Hong Kong’s Arch Capital Sells Taiwan Warehouse to KGI Life for $201M

Arch Capital Management has agreed to sell a warehouse in Taiwan to Taipei-based KGI Life Insurance for $201 million, with the Hong Kong private equity firm set to continue managing the asset after the disposal.

Located in Taoyuan city near Taipei’s international airport, the Halo Taoyuan One logistics centre spans 63,711 square metres (685,780 square feet) of gross floor area, Arch said Monday in a release. The four-storey multi-temperature shed provides capacity for more than 42,000 pallets in one of the island’s key logistics corridors, according to the Manulife-backed firm.

The deal marks the latest in a series of exits by Arch across Asia Pacific in recent months, including a Taoyuan mall, a cold storage facility in the Philippines and a Manila data centre, said founder and CEO Richard Yue.

“These realisations, representing approximately $1.2 billion of gross asset value, reflect our ability to execute with discipline across the full investment cycle — from acquisition and development to leasing, stabilisation and exit — all the while leveraging our property skills and operational know-how to create and realise value for our investors,” Yue said.

Halo Footprint Grows

Completed in 2023 on land acquired in 2021, Halo Taoyuan One features clear heights of 10 to 12 metres (32.8 to 39.4 feet) and can accommodate third-party logistics providers, retailers, e-commerce operators and food supply chains using temperature-controlled and dry warehouse space.

Arch developed the project as part of a strategy to build institutional-grade logistics infrastructure across key consumption and manufacturing markets of Asia Pacific. Northern Taiwan, anchored by Taipei, accounts for roughly half of the island’s population and hosts manufacturing and technology clusters that generate demand for modern distribution facilities.

KGI Life invests in real estate to generate stable, long-term income to match its insurance liabilities, typically targeting income-producing assets like logistics, offices and commercial properties. The TWSE-listed insurer, part of the KGI financial group controlled by the Koo family, adopts a buy-and-hold approach focused on rental income rather than development gains.

Arch’s Halo logistics platform continues to expand in Taoyuan with Halo Taoyuan Two, developed through a joint venture with Japan’s Mitsubishi Estate on land purchased in 2022. The fully pre-leased shed was completed in 2025 and has obtained its occupation permit, according to Arch. Halo Taoyuan Three is scheduled for completion in the second half of 2027.

“Arch has built a strong investment presence in Taiwan across multiple asset classes, supported by a local team with deep sourcing, asset management and execution capabilities,” said James Chou, the firm’s senior managing director.

Exit Velocity

Founded in 2006, Arch operates 10 regional offices and manages a portfolio with a gross asset value of $15.1 billion across funds, joint ventures, co-investments and separate accounts.

Canada’s Manulife Investment Management acquired a significant minority stake in Arch in 2022, one year before the Hong Kong firm bought 25 multi-family assets in Tokyo as its first investments in Japan.

In December of last year, Arch exited its investment in a Taoyuan mall in a deal valuing the property at $500 million, marking one of Taiwan’s biggest property deals of 2025. Arch sold the unspecified slice of TaiMall to Millerful, a Taiwanese REIT manager and Arch’s joint venture partner on the original acquisition of the seven-storey complex in 2018 for $450 million.

Also in December, Arch completed the divestment of Pinnacle Cold Storage, a refrigerated logistics facility outside of Manila, to Peregrine Cold Logistics, an Asia Pacific cold chain platform backed by US infrastructure fund manager Stonepeak.

Earlier in 2025, Arch sold its Digital Halo data centre platform to Swiss private equity firm Partners Group while staying on as a minority shareholder. Arch had teamed with former senior executives from Keppel Corp’s data centre business to form Digital Halo in 2023 with an initial $500 million investment in a 70-megawatt data centre campus east of Manila.