Zurich Insurance office portions sold at record area price: paper

According to the paper, Zurich Insurance has sold the seventh to 12th floors plus 24 parking spaces to Jiwan Co. under Hong Kong's Phoenix Property Investors for a total of NT$2.7 billion.

The building is 24 years of age, and floor space on the seventh to 12th floors totals 2,325 ping (3.3 square meters). The total price translates into a unit price of NT$1.15 million per ping, the highest among grade-B office buildings in the Dunhua North Road business circle.

The report cited Zurich Insurance President Cheng Lin-ching as saying the company has the sixth to 12th floors of the building and will retain the sixth floor, which is leased to another firm. Cheng however declined to give further details until after public disclosure of the sale.

Real estate advisor CBRE, which sold the property on Zurich's behalf, said it had originally intended to sell the office spaces to TransGlobe Life for NT$3.52 billion. The deal was called off due to a new Financial Supervisory Commission rule that raised the investment yield for real estate purchases by insurance firms. The measure aims to keep insurers from offering overtly high prices to keep property value in check.

CBRE then brought a buyer from the noninsurance circle, and the transfer of deeds took place Jan. 25, the paper reported.

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