Auction of Kaohsiung properties ends in another failure

According to Taiwan Financial Asset Service Corp. (TFASC), which was commissioned by some of the creditor banks to conduct the sale, the failure came as a surprise as the base prices had been slashed by about 10 percent in the second auction.

At the same time, three buyers had expressed willingness to bid for the properties, yet only one made the bid eventually.

The items in the sale included spaces on the low to medium floors of the 85 Building totaling 31,000 pings, as well as 22,000 pings of land near Zuoying Station of Taiwan High-Speed Rail. Each ping is 3.3 square meters.

The properties belonged to Chien Tai Cement, which owes NT$5.298 billion to a consortium of 13 banks that provided a syndicate loan to it. Some of the creditor banks have asked TFASC to auction off NT$4.543 billion, or 85.7 percent, of the poor asset. Chien Tai used the above-mentioned properties as collateral for the loan.

According to TFASC, buyers are currently hesitant to get the properties, as they still have a lot of negotiations to do with the creditor banks before finally getting the places.

They may be waiting for another auction, whereby the floor prices will be lowered even further, TFASC said.

Subscribe to The China Post and save 25%. Click here

PrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email