Swire Properties Limited and HKR International Limited (HKRI) have entered into an agreement with Bank of China under which Bank of China will arrange and underwrite a syndicated loan of up to RMB8 billion for the Dazhongli project, which is being co-developed by the two companies.

     The Dazhongli project is a major investment by Swire Properties and HKRI in the Jing An District of Shanghai. With a planned gross floor area (excluding car parks) of approximately 3.5 million sq ft (approx 323,000 sq m), the mixed-use development will comprise a major retail centre, two office towers and three hotels. It is scheduled to open in phases from 2014 onwards.

 

Swire Properties' subsidiary TaiKoo Hui (Guangzhou) Development Co Ltd also announced recently that it has entered an additional agreement with the Bank of China Guangdong Branch to increase its term loan facility to RMB2.65 billion for the development of TaiKoo Hui project.

     Guaranteed by Swire Properties, a five-year term loan facility of RMB2 billion was arranged in April last year. The developer and the bank have now reached an agreement to increase the loan facility by RMB650 million.

     As a result of the increased loan facility for TaiKoo Hui, together with the RMB2.5 billion syndicated loan facility for the INDIGO project in Beijing and the RMB8 billion funding arrangement for the Dazhongli project in Shanghai, approximately 96% of Swire Properties' currently estimated funding requirements for its existing mainland projects will be covered.

     Gordon Ongley, Swire Properties' Chief Executive Officer - Mainland, said, "TaiKoo Hui is one of our key developments in Mainland China. With the additional funding, we are confident that we will have sufficient resources for the development of this mixed-use project, which consists of a prime shopping centre, Grade-A offices, a luxury hotel and a cultural centre. Upon the completion of the project, we believe it will become one of the city's outstanding landmarks."

     Centrally located in Tianhe District in Guangzhou and accessible via road and metro transport, TaiKoo Hui incorporates office, retail, hotel and cultural elements. With a pre-lease rate of over 80%, the retail centre is set to open in the fourth quarter this year.

 

Incorporated in 1972, Swire Properties develops and manages commercial, retail, hotel and residential properties, with a particular focus on mixed-use development in prime locations at major mass transportation intersections. The Company's investment portfolio in Hong Kong totals approximately 17.7 million sq ft (approximately 1.64 million sq m) of gross floor area, with Pacific Place, Island East and Festival Walk as its core holdings. In addition to Hong Kong, the Company has a presence in Mainland China, the United States and the United Kingdom.

     In Mainland China, Swire Properties has an investment portfolio amounting to approximately 10.8 million sq ft (over 1 million sq m), the majority of which is under construction. The four projects consist of mixed-use developments in Beijing, Shanghai and Guangzhou, with Sanlitun Village and The Opposite House hotel in Beijing being the best-known among them.

     In 2008, the Company formed Swire Hotels to create and manage intriguing urban hotels in Hong Kong, Mainland China and the United Kingdom, aimed at providing an exceptional experience for travellers who seek individuality, style and personalised service.

     The Company is a wholly-owned subsidiary of the publicly-listed Swire Pacific Limited whose businesses are grouped under five operating divisions - property, aviation, beverages, marine services and trading & industrial.