Hong Kong, 28 November, 2006 – Swire Properties Limited (“Swire Properties”) and HKR International Limited (“HKRI”) announced today that they have signed a conditional agreement for the purchase by Swire Properties of a 50% interest in the Dazhongli Project in the Jing’an District of Shanghai.
As a result of this agreement, Swire Properties and HKRI will become strategic partners in the development of the Dazhongli Project, a landmark project in Jing'an District consisting of a major retail centre, offices, hotels, serviced apartments and residential units, to be jointly developed and held primarily for long term investment.
"We are honoured to work with such a reputable partner. By leveraging on both companies' expertise, especially the proven track record of Swire Properties in developing premier retail and commercial developments, we trust that substantial synergies would be created to add much further value to the project," said Mr. Victor Cha, Managing Director of HKR International Limited.
"The Dazhongli Project is aimed to be a flagship development, a Shanghai landmark as well as a destination point in Jing'an District. With the core strengths of HKRI in developing mega scale projects with innovative concepts like Discovery Bay, and multi-disciplinary projects in Hong Kong and SE Asia, we are confident in creating a signature project at Jing'an," remarked Mr. Cha.
This agreement also signifies a milestone in achieving HKRI's strategic objective of expanding and diversifying in Mainland China while helping to build a broader recurrent income base.
Keith Kerr, Chairman of Swire Properties, commented: "We believe this site in Jing'an has excellent long term potential and fits well with our core investment strategy of retail-led mixed use projects in major Chinese cities. We have similar aspirations to HKRI in the creation of long term value, and we welcome the opportunity of working with them.
"We have a track record of high quality developments in Hong Kong and can bring that experience to this opportunity in Shanghai. We believe that working with HKRI we can create a major new centre in Jing'an District, making the most of the unique characteristics of the site in order to maximise the potential of the development. This will enable us to create maximum value for both our shareholders and for the local community."