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Cathay Life, IKEA win bids on Taichung BOT project.

Taipei, May 20, 2011 (CENS) -- A consortium jointly formed by Cathay Life Insurance Co. and the Sweden-based IKEA Group won the bids on the "City 81" BOT (build-operate-transfer) project, located in the Taichung City seventh-stage rezoning area, offered by the Taichung City Government.

Taichung City Government will sign a BOT contract with the consortium and transfer land ownership to the consortium for beginning construction by the end of this year.

The consortium will spend more than NT$1.8 billion to complete the BOT project, which is expected to begin construction by the end of the year at the earliest and become operational in mid-2013.

After the completion of the BOT project, Cathay Life Insurance will be the landlord responsible for the construction of the project and IKEA will be the leaseholder to operate its flagship store which will open in 2013. IKEA be the second international retail chain to enter Taichung City market on trail of the France-based Decathlon Co.

The IKEA's four-story flagship store, with floor space of 14,400 pings (one ping equals to 36 square feet), will be the largest of its kind in Taiwan.

After entering Taiwan market in 1994, IKEA has established four branch stores island-wide, with one each in Taipei City, Hsinchuang Dist. of New Taipei City, Taoyuan County, and Kaohsiung City. The company has so far issued 800,000 in-house cards in Taiwan.

Taichung City Government deputy mayor C.C. Hsiao said there are more than six million populations living in the six cities and counties in central Taiwan with huge consumption power. Almost all of domestic chain distributors have established strongholds in this area.
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Title Annotation:Cathay Life Insurance Co. and IKEA Group
Author:Shen, Ben
Publication:The Taiwan Economic News
Article Type:Brief article
Geographic Code:9TAIW
Date:May 20, 2011
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