TAIPEI -(Dow Jones)- Taipei's city government is accepting bids to develop and operate a NT$2.7 billion electronics shopping district modeled after Tokyo's Akihabara that it hopes will be completed in 2013, a government official said Tuesday.
"We want to develop the area into a modern electronics shopping district and help boost sales of Taiwan's consumer electronics," the official, who declined to be named, told Dow Jones Newswires.
The shopping area will be built in Taipei's Zhongshan district.
The government will accept bids for the project until March 15, she said, declining to say which companies have expressed interest in the project. A Commercial Times report Tuesday said Hon Hai Precision Industry Co. (2317.TW), Clevo Co. (2362.TW) and Shin Kong Mitsukoshi are likely to bid on the project.
The winner could be announced in May, the official said.
The winning bidder will have four years to pay royalty fees totaling at least NT$500 million, the city's government said in a statement. The winner will also have to pay yearly rental fees equivalent to 1% of the value of the land as appraised by the government during the construction phase. The fees will go up to 3% once the shopping district has started operating.
The winning bidder's contract will last 50 years, after which the land and properties will be transferred back to Taipei's city government, the official said, adding the government will not make any investment in the project.
The district's total land area is 8,882 square meters, and Chinghuan Consulting Inc. is the advisor on the project, the official said.
By Charmian Kok, Dow Jones Newswires; 88622 502-2557; charmian.kok@ dowjones.com
Published by: NASDAQ.Com
"We want to develop the area into a modern electronics shopping district and help boost sales of Taiwan's consumer electronics," the official, who declined to be named, told Dow Jones Newswires.
The shopping area will be built in Taipei's Zhongshan district.
The government will accept bids for the project until March 15, she said, declining to say which companies have expressed interest in the project. A Commercial Times report Tuesday said Hon Hai Precision Industry Co. (2317.TW), Clevo Co. (2362.TW) and Shin Kong Mitsukoshi are likely to bid on the project.
The winner could be announced in May, the official said.
The winning bidder will have four years to pay royalty fees totaling at least NT$500 million, the city's government said in a statement. The winner will also have to pay yearly rental fees equivalent to 1% of the value of the land as appraised by the government during the construction phase. The fees will go up to 3% once the shopping district has started operating.
The winning bidder's contract will last 50 years, after which the land and properties will be transferred back to Taipei's city government, the official said, adding the government will not make any investment in the project.
The district's total land area is 8,882 square meters, and Chinghuan Consulting Inc. is the advisor on the project, the official said.
By Charmian Kok, Dow Jones Newswires; 88622 502-2557; charmian.kok@ dowjones.com
Published by: NASDAQ.Com
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