Hong Kong’s Arch Capital Exits Stake in $500M Taiwan Mall

Arch Capital Management has exited its investment in a Taiwan shopping centre in a deal valuing the property at $500 million, marking one of the island’s biggest publicly announced property deals of 2025.

Hong Kong-based Arch sold the unspecified slice of TaiMall in Taoyuan 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. 

The Manulife-backed firm had executed a value-add strategy at the 100,000 square metre (1 million square foot) mall by positioning the facility as a family shopping centre, including with the launch of an 18,000 square metre outdoor children’s park on previously vacant land. Arch said the divestment underscores strong liquidity and investor confidence in the market and represents a major milestone in the firm’s presence in Taiwan.

“We are confident in the institutional nature and sound liquidity for quality core assets in the Taiwanese market,” said Arch founder and CEO Richard Yue. “Given the market’s resilience and the strategic opportunities we see, we are positive that our portfolio will continue to grow steadily in the coming years, supported by our deep local expertise and disciplined investment approach.”

Driving Revenue Growth

As the largest shopping centre in the Taoyuan area southwest of Taipei, TaiMall comprises a cinema, an entertainment centre, a small sports complex and more than 300 retail tenants.

Arch picked up the 1999-vintage mall seven years ago on behalf of an unidentified institutional investor as a play on the growing population of Taoyuan — the site of Taiwan’s main airport — and the “concentration of high-tech and manufacturing companies in the vicinity” that would ensure an extensive customer base for the mall, managing director James Chou said at the time.

“Key achievements under Arch’s active management include driving over 20 percent revenue growth despite three years of COVID-19 disruptions,” Chou said Wednesday in a release.

Arch’s disposal values TaiMall at $5,000 per square metre of gross floor area and closes the book on the firm’s second major investment in Taiwan, where Arch is also developing One Riverbend, a 228-unit riverfront residential complex in New Taipei City.

“Drawing on deep roots and extensive experience in Taiwan, we’ve built a strong presence across logistics development and operations through our Halo Logistics platform, residential development, and retail sectors,” said Arch chief investment officer Jonathan Umali. “This transaction further reflects our commitment to delivering sustainable growth and unlocking value in Taiwan, as well as throughout Asia Pacific’s most dynamic real estate markets.”

Regional Reach

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

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

Earlier this year, Arch sold its Digital Halo data centre platform to Swiss private equity firm Partners Group while staying on as a minority shareholder.