MediaTek's subsidiary buys office building in Beijing

Sep. 24, 2009 (China Knowledge) - MediaTek (Beijing) Inc, a subsidiary of Taiwan-based chip designer MediaTek Inc, signed an agreement with Raycom Real Estate Development Co Ltd to buy an office building from the latter, sources reported.

MediaTek will spend a total of RMB 744.9 million for the commercial property in Zhongguancun, Beijing.

The office building, which is still under construction, has a land area of 6,000 square meters, with a planned floor area of 28,542 square meters.

MediaTek will make the building for office use, according to the firm's statement. However, it is estimated that the acquisition is also an investment move due to the low price. Besides, the firm has only about 1,000 employees in mainland China, around 400 out of which are based in Beijing.

The move may also indicate that MediaTek intends to deepen cooperation with Lenovo Group Ltd<0992>, , according to sources, explaining that both Raycom Real Estate and Lenovo are subsidiaries of Legend Holdings.

The Taiwanese chip designer provides cell phone processors to Lenovo, which is working on Android-powered Ophones for China Mobile<0941><CHL>.

Reportedly, MediaTek also bought an office building in Taiwan last month for NT$1.6 billion.

MediaTek recorded NT$9.16 billion of net profit in the second quarter of this year, surging 79.8% year on year.