Swire Properties Ltd and the Guangzhou Daily Group today (Monday, 29 April 2002) signed an agreement to develop the Taikoo Hui Guangzhou Cultural Plaza commercial and cultural complex in the Tianhe District of Guangzhou.

With an investment of ¥4 billion, the project will be Swire Properties' first substantial development in Mainland China. Swire Properties has a 55% stake in the joint venture, with the Guangzhou Daily Group holding a 45% stake.

The complex, which will be scheduled for completion in 2006/7, will consist of a major retail centre, offices, including the headquarter office for Guangzhou Daily, a hotel, a performing arts centre and a major city library; more than 4 million square feet (370,000 square metres) in total. Upon completion, Taikoo Hui Guangzhou Cultural Plaza will be managed by Swire Properties.

The project is the first of its kind in Mainland China to include a combination of arts and cultural facilities with retail and commercial uses together with an international hotel in a single integrated development comprehensively planned for working, shopping, living and leisure.

Situated in the heart of the Tianhe District, the site is adjacent to the Tiyuzhongxin Station (Tianhe Sports Centre Station) of the Metro Line 1. A connection to a proposed new station on Metro Line 3 is also planned. The site is also close to the Guangzhou East Station, where through train services connect this vibrant city with Hong Kong.

Mr Keith Kerr, Managing Director of Swire Properties Ltd., remarked, "Taikoo Hui Guangzhou Cultural Plaza will become a landmark for Swire Properties and for Guangzhou."

"This complex will represent the newest generation of Swire Properties' developments, a generation that combines the strength and individual uniqueness of our three successful projects in Hong Kong, namely Pacific Place, Cityplaza and Festival Walk. Its pivotal location, at the confluence of the transportation systems, fulfils all the parameters that have contributed to our successful development of these core properties in Hong Kong.

"We had been looking for the right opportunity to invest in Mainland China - one that would allow us to utilise our particular expertise in property development and management. We have long seen Hong Kong's integration with the Pearl River Delta as the best option for our continued growth and prosperity.

"This project is a tangible expression of our faith in China's economic future. It is with great pleasure that I can say we have found both an excellent partner and a prime site to enable us to undertake our first significant investment in the mainland."

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