IOI Prop upbeat on Taipei 101 bid
Source: New Straits Times
IOI Properties Group Bhd is confident its plan to buy a 37.17 per cent stake in Taipei Financial Centre Corp (TFCC) for RM2.74 billion will get the nod from the Taiwanese government as it does not have China-related participation.
IOI Properties is looking to buy the stake in TFCC, which owns the iconic Taipei 101 tower, from Ting Hsin International Group,
Taipei 101 consists of a mall and office tower and its tenants include the Taiwan Stock Exchange, multinational financial institutions, major accounting firms and enterprises from China.
The deal came under government scrutiny after Taiwan’s finance minister objected to foreigners buying a big stake in the landmark tower.
The Taiwanese Finance Ministry, through various government-linked entities, is the biggest shareholder in TFCC with a 44.53 per cent stake.
According to IOI Properties group executive chairman Tan Sri Lee Shin Cheng, the issue has cooled down.
“We are genuine investors with no China-related participation. Therefore, I think the Taiwanese government will approve it,” he said after its shareholders meeting, here, yesterday.
Lee said the investment would allow IOI Properties to own part of Taipei 101 — one of the world’s tallest buildings and a landmark skyscraper.
The property group does not plan to seek management control of the famous landmark, he added.
Meanwhile, IOI Properties expects income from its investment property segment to rise with the opening of IOI City Mall in IOI Resort City, here.
It has also commenced the development of IOI Palm City in the third quarter of this year, which will boost future earnings, Lee said.
IOI Palm City is an integrated development slated to be completed in the third quarter of 2019.