Lung Yen wins auction of 2 floors in Daya building with NT$1.211 bil. bid

Niu An-tse, an assistant manager with Lung Yen, commented on the NT$1.211 billion purchase, saying the company wanted to capitalize on the handsome investment return associated with the Daya building, which formerly belonged to Daya Department Store and is located right across from Taipei Railway Station.

“We can collect about NT$45 million in rents annually, translating into an investment yield of 3 percent,” Niu said.

The spaces auctioned off yesterday were located on the third and fourth floors of Daya as well as 50 parking spaces on the underground floor. This was the third time the package was put up for auction.

The base price dropped from NT$1.806 billion during the first auction to yesterday's NT$1.15582 billion, a reduction of NT$650 million. Lung Yen's offering of NT$1.211 billion was a premium of NT$45.28 million, or 3.9 percent, over the base price.

The figure translated into a unit price of NT$555,000 a ping, based on a total space of 1,849 ping on the third and fourth floors, as well as the 50 parking spaces. The unit price was “in line with market value in the area,” said Wang Wei-hung, director of Global Asset Management. One ping is 3.3 square meters.

Industry watchers expected Gobo Service to get the bid, as it has already acquired spaces on the second, fifth and sixth floors of the Daya building, which were offered in separate auctions since January. Meanwhile, Gobo already owns the seventh to 11th floors of the building.

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