Jones Lang LaSalle was entrusted with the auction of the factory buildings and land in Guishan B Industrial Park, Taoyuan. (Provided by Jones Lang LaSalle)
[Reporter Xu Yiping/Report from Taipei] Following the demand for factory expansion in the AI industry chain, there are one factory buildings each in Guishan, Taoyuan, and Hukou, Hsinchu, for public auction. The area of industrial land released by the two projects alone exceeds 15,000 square meters. With reference to the regional industrial land market, it is estimated that the combined minimum price of the two factory buildings can reach up to 7.5 billion yuan.
According to statistics from Jones Lang LaSalle, the cumulative transaction value of industrial real estate nationwide in the first three quarters of this year has reached 259.4 billion yuan, accounting for approximately 69% of the total transaction value of commercial real estate plus land, setting a new high in 2018 and in the past nine years. Factories expected to be auctioned The house is located on Changshou Road, Guishan District, Taoyuan City. The site area is about 4,957 square meters and the building area is about 2,865.75 square meters. The urban renewal project has been approved. In the future, the old factory buildings can be demolished and the construction of integrated factories or modern industrial facilities can be planned.
If we estimate based on the current regional industrial land market price of NT$400,000 to NT$500,000 per square meter, the base price is very likely to fall between NT$2 billion and NT$2.5 billion. It is understood that the seller of the factory is a traditional legal person and is mainly engaged in the textile industry. It is reported that more than 10 groups of potential buyers have made inquiries, mainly manufacturing and construction companies.
Huang Yuqi, senior deputy general manager of the investment department of Jones Lang LaSalle, said that with the rapid development of AI applications, corporate needs have gradually extended from equipment procurement to production capacity construction and supply chain layout, thereby driving active industrial real estate transactions.
Potential buyers are manufacturing and construction companies
As for another factory building auction case, it is in Hukou Industrial Zone, Hsinchu County. According to CBRE, the factory base area is nearly 10,200 square meters, and the existing building area is about 6,381.35 square meters. The current condition of the building includes factory buildings, warehouses, and office space.
CBRE was entrusted to auction the factory buildings and land in Hukou Industrial Zone. (Courtesy of CBRE)
It is understood that the market price of industrial land in the Hukou Industrial Zone in recent years has been between 350,000 and 400,000 yuan per square meter. However, at the end of September, Xinxing Electronics (3037) announced that it had purchased Bridgestone’s Hukou factory in Taiwan for 10.089 billion yuan. At that time, the unit price of the land per square meter was calculated at 480,000 to 510,000 yuan. CBRE pointed out that the factory transaction The main reason for the jump in the land unit price of Yidian is that the base area for buying and selling factory buildings is nearly 20,000 square meters. In the past, large-scale industrial land has rarely been released in Hukou. Therefore, overall, the transaction price of a large-scale complete base in Hukou Industrial Zone has been significantly higher than the existing market. When the same type of land is released in the future, this price is expected to be used as a reference.
Therefore, it is understood that for another 10,000-square-meter industrial land in Hukou that will be put up for auction in the near future, if the transaction unit price of Xinxing Electronics is used as a basis, the estimated base price is likely to be around 5 billion yuan.
CBRE Director Jian Weixian analyzed that the floor area of the existing Hukou factory building that is expected to be put up for public auction only accounts for about 21% of the legal maximum floor area. Based on the current floor area ratio, the legal buildable floor area exceeds 30,000 square meters. Therefore, there is flexibility for future expansion, phased reconstruction, or redevelopment of the entire district.
