KGI Life spent 20.6 billion yuan to buy the entire "Runtai Yucheng Plaza", setting a new high in Taiwan's commercial transactions
Huida leases for 10 years and Runtaixin expects disposal profits of nearly 10 billion yuan
Quick Look
- KGI Life purchased the entire "Runtai Yucheng Plaza" in Nangang, Taipei, for NT$20.6 billion, setting a new record for the total transaction value of an entire office building in Taiwan's history.
- The seller of the building is Runtaixin, and the estimated profit from the disposal is nearly 10 billion yuan.
- Huida, a well-known AI company, has leased the building for 10 years.
AI-generated summary
Why It Matters
Runtai Yucheng Plaza is an office building with 27 floors above ground and 5 floors below ground to be completed by the end of 2023. The total building area is approximately 17,526.37 square meters.
KGI Life spent 20.6 billion yuan to buy the entire "Runtai Yucheng Plaza". (Photo by reporter Xu Yiping)
[Reporter Xu Yiping/Taipei Report] Sky-high office transaction case, the market value of the entire building exceeds 20 billion yuan. According to the latest release from the Public Information Observatory, the "Runtai Yucheng Plaza" that Huida signed a 10-year lease in Nangang was purchased by KGI Life for 20.6 billion yuan, setting a new high in the total amount of office transactions in Taiwan's history.
Real estate industry players pointed out that the seller of the office building is Runtaixin (9945). According to the announcement, the disposal proceeds are expected to be as high as 9.919 billion yuan, nearly 10 billion yuan. The target of the building is to be completed by the end of 2023. It is an office building with 27 floors above ground and 5 floors underground. The total building area is approximately 17,526.37 square meters.
Among them, the corporate tenant on the 3rd to 17th floors is the well-known AI-themed company Huida, which rented 12,593 square meters in one go. The lease lasts for 10 years and one month, and the total rent is as high as 2.897 billion yuan.
Ding Wenzhen, senior associate of Savills Research Department, pointed out that the sky-high-priced office building that was just sold is close to the Kunyang MRT station. Based on the total rent previously announced by Runtai, the monthly rent per square meter for tenants renting 17 floors is roughly RMB 2,700 to 2,800. Estimated based on the total transaction price of RMB 20.6 billion, the rental yield actually meets the minimum yield requirements of the Financial Supervisory Commission.
The rental yield meets the minimum requirements of the Financial Supervisory Commission
According to the top ten commercial real estate transactions compiled by Savills in the past 10 years, they are either factories, hotels, or department stores. The total transaction value of the entire office building this time reached 20.6 billion yuan, which should have set a new record for the total transaction value of office buildings in Taiwan.
The commercial brokerage industry further calculated that if each parking space is estimated at 3 million yuan, the unit price of an office per square meter is about 1.125 million yuan.
What to Watch
AI outlook — possibilities, not facts
Runtaixin’s profit injection due to disposal will significantly affect the financial report
Very likely · Within months
Open Questions
- Will KGI Life further adjust the building’s lease and investment strategy in the future?
