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Case Study | Wan Yu Building: Divestment

Colliers Asia - Case Study - Wan Yu Building Taipei

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Location (City)

Asset Type

Transaction Date

Size (Sqm)

Value (USD)

Taipei

Residential December 2020 9,875 $91 million


Services provided:
Divestment

Buyer: Ching Jia Development

Seller: GAW Capital Partners

 

The Challenge


  • Bearish market sentiment towards residential assets
  • Need for an urban renewal scheme as part of acquisition

The residential market had been in a downturn since Gaw Capital acquired the property in 2015. Market sentiment was poor, and the price had been decreasing since then.

The pool of potential acquirers was limited due to the deal size and the need to apply for an urban renewal scheme to increase the value of the asset.

Acquirers required rigid deal terms to address their concerns on the uncertainties throughout the urban renewal approval process.

The Strategy

Colliers identified developers with capital strength and urban renewal expertise, and proactively approached cross-market developers to broaden the pool of potential acquirers.

The Solution


  • Constant engagement with potential acquirers
  • Careful identification of potential acquirers

Colliers constantly provided the potential acquirers with the latest urban renewal regulations and market research to demonstrate the potential benefits of applying for the urban renewal scheme.

Colliers also identified cross-market developers and managed to negotiate for the best offer from Ching Jia Development - a Taichung-based developer keen to acquire prime development sites in Taipei.

The Result

The asset was sold to Ching Jia Development for TWD2.73 billion (US$91 million), a 46% increase the initial value despite the market downturn.

 

"Thank you, Colliers Team, for the assistance on this project throughout our acquisition, property management, and disposition. Looking forward to working with you to close more deals in the future."

 

-- Ted Lin, GAW Capital Partners

 

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Related Experts
Taiwan China

Derek Huang

Deputy Managing Director and Head of CMIS

Capital Markets & Investment Services

Taipei

Derek had over 20 years’ working experience in real estate industry, coverage including real estate investment, market research, valuation and asset management.

View expert