http://focustaiwan.tw/ShowNews/WebNe...D=201209260014
Cathay Life to invest over NT$20 billion in Taoyuan property project
2012/09/26 16:44:26
Taipei, Sept. 26 (CNA) Cathay Life Insurance Co., the life insurance arm of Cathay Financial Holding Co., will team up with the Taiwan-based Gloria Hotel Group to invest more than NT$20 billion (US$682 million) in a property project in Taoyuan in northern Taiwan.
Led by Cathay Life, the consortium won a bid Tuesday for a 50-year lease from the Bureau of High Speed Rail to develop a 21.88-hectare plot of land located next to Taoyuan Station along Taiwan's high-speed rail line.
The life insurer said the consortium is planning to build a complex complete with a 99,000-square-meter shopping mall, 23,000 square meters of office space and a 320-room hotel.
Cathay Life said it will set aside about 3.3 hectares of the land for the Taoyuan Aerotropolis project launched by the Cabinet to develop the area surrounding Taiwan Taoyuan International Airport.
Earlier this month, the government announced it is planning to invest NT$336.6 billion in the aerotropolis project, which is scheduled to be completed in 2030. The private sector is expected to contribute an additional NT$126.4 billion.
According to the Bureau of High Speed Rail, the first phase of the Cathay Life development project -- the largest property development plan along the high speed rail line to date -- is expected to begin operations in 2016.
The project's shopping mall is expected to lure more than 250 international brands, while the development, which will be connected to the high speed rail system and the future mass rapid transit system connecting Taipei to the airport, will attract an estimated 7.5 million visitors every year, the bureau said.
In addition, the bureau estimated that the project will generate at least NT$10 billion in revenues for the local tourism sector a year and create more than 2,000 jobs after it is completed.
(By Tien Yu-pin and Frances Huang)
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Transportation sector moves higher on Taoyuan Aerotropolis project
2012/09/19 12:24:31
Taipei, Sept 19 (CNA) The local transportation sector moved higher Wednesday morning after the government announced a day earlier the launch of the Taoyuan Aerotropolis project, which aims to develop the area surrounding Taiwan Taoyuan International Airport, dealers said.
Many investors have embraced high hopes that the project, into which the government will pour a total of NT$336.6 billion (US$11.44 billion), will create business opportunities not only in transportation and logistics but also in property development, they said.
As of 11:28 a.m., the transportation sector had added 1.65 percent, outperforming the broader market, which had edged higher, up 0.19 percent at 7,749.18 points.
Shares of China Airlines, one of Taiwan's leading international carriers, gained 2.54 percent to NT$12.10, and shares of rival EVA Airways rose 2.09 percent to NT$17.10.
Shares of Farglory Free Trade Zone Investment Holding, which is developing a free trade zone in Taoyuan, added 7 percent, the maximum daily increase, to NT$21.65, while shares of China Container Terminal, an inland terminal operator, also rose 7 percent to NT$17.90.
"The aerotropolis project showed the government's intention to boost the economy which is slowing down amid the global weakness," Hua Nan Securities analyst Henry Miao said.
"It was no surprise that the particular positive lead has prompted investors to buy this morning," Miao said.
In addition to the government's massive investment, the private sector is expected to inject NT$126.4 billion into the project, which will involve the expansion of airport's terminals, and the establishment of an aerospace industrial park and special zones for cargo, passenger and logistics services.
The government estimated the project, scheduled to be completed by 2030, will bring in about NT$2.3 trillion in economic befits and create about 260,000 job openings.
"It is a huge plan, involving a lot of money," Miao said. "While investors appear upbeat about the project, I am worried about how the government will seek financial resources to pursue it."
"More important, as it is a long-term project, it is unlikely to help the economy achieve a turnaround overnight. It is too early to say when and whether Taiwan will enjoy real benefits as a result of the project," he said.
Miao said the local economy remained haunted by the global slowdown at a time when the world's falling demand has imposed an adversary impact on fees in air and shipping cargo services.
"I am afraid the current gains posted by the local transportation sector will be short-lived as investors calm down a little bit with enthusiasm toward the aerotropolis project fading to some extent," Miao said.
(By Chao Hsiao-hui and Frances Huang)
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