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Case Study | Riant Paza: Divestment

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Location (City)

Asset Type

Transaction Date

Size (Sqm)

Value (USD)

Hsinchu

Mixed-use

January 2021 58,114.94

$201.4 million

 

Buyer: Shin Kong Life Insurance

Seller: Riant Capital

Services provided: Divestment

 

The Challenge

Although the office portion of Riant Plaza enjoyed constant high occupancy rates and outperforming rental level with notable tenancy profiles, it was difficult for to attract a higher sale price as most of the adjacent office building performed a lower rental level. The hotel portion was a 140-keys trendy business hotel managed by IHG Group (Indigo).

However, with travel restrictions in place, there was poor market sentiment towards the hotel sector.

The Strategy

By highlighting the scarcity of en-bloc income producing property investment opportunities, the team was able to stimulate the acquirers’ interests. Additionally, the team made great efforts in identifying the difference in building quality between Riant Plaza and its competitors, the market niche based on the strong office demands of IC Design companies and semiconductor material and equipment suppliers and substantial upsides in further rental growth of the area.

The team also worked closely with Colliers' Project Management experts to provide feasible office conversion study for the hotel portion, for the potential acquirers’ considerations.

The Solution

As Colliers was familiar with the investment appetite of the most active insurance companies in Taiwan, the team was able to focus on those who were keen to expand their real estate portfolio in 2021.

The Result

The long-standing and solid relationships that Colliers enjoyed with both the Vendor and the Acquirer paid off – as the team were able to bridge the expectation gap and successfully assist the both sides to negotiate a common ground to make the transaction happened. The asset was sold to Shin Kong Life Insurance for TWD5.64billion(USD 201 million), a record high unit price in the Hsinchu market.

 

Connect with our Capital Markets and Investment Services experts today to find out how we can accelerate the success of your real estate investment.

View more of our client success stories and expert thought leadership here.

 


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.

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