Taiwan Financial Asset Service Corp. is positioning itself as a pioneer in owner-led urban renewal, putting up both money and manpower. That is good news for owners of ageing buildings whose renewal plans have stalled, and pressure on the developers who have long dominated the urban renewal market.

• Taiwan Financial Asset Service Corp. will provide "full project management" for owner-led urban renewal, and will be the first to offer upfront funding, charging only a service fee rather than taking a share of the property.
• The average age of buildings across Taiwan has reached 34.1 years, with those over 30 years old accounting for nearly 60 percent of the total, or about 5.5 million units.
• Of the urban renewal projects approved by the government over the past six years, more than 90 percent were joint developments with construction firms; owner-led renewal accounted for only 6 percent.
• In joint developments with construction firms, landowners give up 30 to 50 percent of the profit, making it difficult to secure a one-ping-for-one-ping swap of indoor floor space. Small sites and those in less desirable locations attract even less interest.
• The first memorandum of understanding covers the Kaohsiung Gushan Riverside Mall, a 2,530-ping site where three 24-storey towers are planned, with total sales of about NT$13 billion.

Outlook: If the Kaohsiung project moves smoothly from MOU to a formal commission, the share of owner-led urban renewal could rise, weakening developers' bargaining power in the market for redeveloping ageing buildings.