TAIPEI (Taiwan News) – Foxconn said Wednesday it approved the purchase of industrial land and buildings in New Taipei for NT$1 billion (US$31 million), according to a Foxconn press release.
Foxconn said the site’s location and size fit operational and production capacity needs. Foxconn added that the site will be planned for optical communication, ultra-precision molds, and precision molding.
Foxconn said the transaction is classified as a related-party transaction as the seller, Xinhong International Investment Co., is headed by Gou Tai-chiang (郭台強), who is related to company founder Terry Gou (郭台銘). Foxconn said it followed the review and disclosure procedures as required by financial reporting rules and international accounting standards.
The type B industrial property is located at Tucheng Industrial Park and covers 5,008 square meters, or 1,515 ping. A ping equals 3.3 square meters.
The site has a 60% building-coverage ratio and a 210% floor-area ratio, with 3,182 to 6,364 ping available after redevelopment. Type B industrial land is for less polluting light industries such as garments, food production, and electronics assembly.
A building-coverage ratio, also known as building density, is the percentage of a plot of land that a building's footprint or cast shadow occupies. The spatial restriction reserves room between buildings, allowing for sunlight and airflow.
Floor-area ratio (FAR) is the total usable floor area of a building divided by the total area of the plot it sits on. Building-coverage ratio determines how wide a building can be built, whereas floor-area ratio determines how tall a building can reach.
Two property appraisal firms valued the site at between NT$1.01 billion (US$31.11 million) and NT$1.04 billion (US$32.35 million), compared with the NT$1 billion purchase price. The appraisals place the estimated value at NT$667,000 (US$20,730) per ping.
