Opened in 1999, Taimall was the first large shopping center in Taoyuan and today is one of the city's most popular. It was launched with a working capital of US$103 million and investments totaling US$230 million. Its major shareholders include the International Engineering and Construction Group, GIC Real Estate Pte Ltd., China Development Industrial Bank, ACHEM Technology Corp. and China Prosperity Development Corp.
GIC is a sovereign wealth fund that was established by the government of Singapore in 1981 to manage the city-state's foreign reserves. Now the world's third largest with assets of over US$300 billion, according to estimates, it invests mainly in equities, fixed income, money-market instruments and real estate. It held a 10-percent stake in Taimall before the acquisition and also owns the same percentage of shares in Core Pacific City Co., Ltd., a shopping mall in Taipei.
According to Wendy Hsueh, a director at DTZ Debenham Tie Leung International Property Advisers, GIC bought Taimall because the shopping center has significantly adjusted its operations over the past few years with beneficial results.
"Taimall's revenues have been climbing steadily since it remodeled part of its floor space into gyms. In addition, many high-tech companies have moved to Taoyuan, bolstering the mall's consumer base," Hsueh explained. After opening gyms, brand outlets and themed restaurants, Taimall started to turn a profit in 2005. It now boasts annual revenues of around US$90 million.
Mara Wang, general manager of the Sandalwood Property Management Co., Ltd. (Taiwan), said that although Taimall is already a successful enterprise, GIC will be able to attract more businesses to the mall with its global consulting network. "GIC's resources will further boost the growth of the mall's operations."
"By renting Taimall's offices, GIC can expect an initial yield of approximately 6 percent, a figure much higher than that of average premium office space in Taipei, which is 4 percent. That means the mall can generate rental income up to US$1.03 million per month. It's a good investment for GIC," said Hsueh.
Tony Chao, the manager director of Jones Lang LaSalle Taiwan, a real estate services provider, said despite fears that increasing turmoil in the global financial market might begin to impact Taiwan, GIC's procurement of the mall indicates that foreign investors remain highly interested in the country's commercial property market. "We have reason not to be too pessimistic about the market," Chao added.
Write to Melody Chen at melodychen@mail.gio.gov.tw