Shin Kong Mitsukoshi tops Taipei Main Station mall bid; Breeze may sue

Taipei, April 28 (CNA) Shin Kong Mitsukoshi Department Store Co. has been selected as the most preferred bidder for the operating rights of the shopping mall at Taipei Main Station, Taiwan Railway Corp. (TRC) announced Tuesday.

However, the current operator, Breeze Development Co., said Tuesday that it may pursue legal action over the tender process. Breeze was ranked second in the bidding, according to the state-owned railway company.

Located at the heart of the capital's transport network, Taipei Main Station integrates conventional rail, high-speed rail, metro, the airport MRT, and intercity and city bus systems.

With daily passenger traffic exceeding 600,000 and several major development projects nearby, the site is considered one of Taiwan's most lucrative commercial spaces.

The Taipei Main Station mall is currently operated by Breeze Development under the name Breeze Taipei Station, with its contract set to expire on July 24.

TRC opened the tender in mid-January, with bids closing on March 20.

The new contract will run for 15 years, with an option to extend for another eight years, and requires a minimum investment of NT$765 million (US$24.23 million).

According to TRC estimates, the mall currently generates annual revenue of around NT$4 billion, with a target to exceed NT$5 billion under the new operator.

Shin Kong Mitsukoshi was selected as the top-ranked applicant following presentations and a question-and-answer session with the evaluation committee involving eight qualified bidders, TRC said in a statement.

Breeze Development was named the second-ranked bidder and may enter negotiations if a contract cannot be finalized with the top bidder.

However, the announcement was met with resistance from Breeze Development.

In a separate statement issued Tuesday, Breeze revealed it had already filed a formal objection to the results, questioning the fairness and transparency of the evaluation process.

The company added that it has not yet received a response from TRC and is considering filing an administrative lawsuit.

Breeze raised concerns that the evaluation results had allegedly circulated in the market before the official announcement, which it claimed could compromise procedural fairness.

The company also questioned whether committee members met qualification requirements and properly observed conflict-of-interest rules.

It also said that the only committee member with an engineering background did not attend the review meeting, and called for clarification on attendance and its impact on the final scoring.

Describing Taipei Main Station as a national landmark with significant public interest implications, Breeze urged authorities to ensure transparency, noting that it has initiated follow-up procedures to safeguard its legal rights.

TRC said it will proceed with contract negotiations and signing procedures in accordance with regulations.