(Taipei) Shin Kong Life Insurance Co., Ltd. (SKL) today (May 17, 2010) announced the sale by open auction of its Hannover Technology Building in NeiHu District, Taipei City. The property, comprising a land area of 5,518 square meters and a building area of 44,461 square meters, was put up for auction with a floor price of NT$4.6 billion. Fubon Life Insurance Co., Ltd. submitted the winning bid of NT$4.71billion.
 
SKL noted that the Hannover Technology Building, located in the upscale NeiHu Technology Park and fully rented out, providing the buyer immediate rental yield, is a unique real estate investment target. The target is sold despite the high total investment amount, indicating that investors are highly interested in real estate with good location and stable income in the current low-interest environment. Fubon Life’s NT$4.71 billion bid represented a 2.5% premium over the floor price and SKL’s gains from disposal were around NT$1.98 billion.

SKL sold the property in NeiHu District to more flexibly adjust its real estate asset allocation. Since the cost of the real estate acquired in earlier periods (Year 2000) was low, the sale of properties at an opportune time can generate sizable capital gains.