Swire Properties Limited (“Swire Properties”) confirms the acquisition of the Beijing Sanlitun project in partnership with Gateway China Fund I (“Gateway”).
Swire Properties will take an 80 percent stake in the two retail portions with Gateway taking the remaining 20 percent. Swire Properties has also acquired 100 percent of the boutique hotel which forms part of the overall project.
Swire Properties is a wholly-owned subsidiary of the publicly-listed Swire Pacific Limited while Gateway is a private equity real estate fund established in 2005 with a long-term investment focus in China.
“We are delighted with the acquisition of this exciting investment in Beijing,” said Swire Properties’ Chairman Keith Kerr. “This innovative project in Sanlitun is our first investment in Beijing and, together with existing commitments in Shanghai and Guangzhou, enables us to expand our management philosophy of ‘Building Excitement’ to the three principal cities within the Mainland.”
The partnership between Swire Properties and Gateway is also the first time the two companies have joined forces. “As a long-term investor, we are very prudent in choosing joint-venture partner,” said Goodwin Gaw, Chairman of Gateway. “We believe Swire not only brings strong financial backing, but also world-class management expertise. By having Swire Properties as our partner in this project, we are confident that this will ensure our investment is well managed with long-term value creation in mind.”
The Sanlitun project, which has a total investment of Rmb 4.8 billion, comprises two sites with a total site area of over 580,000 sq ft (54,000 sq m) and a total floor area of over 1,850,000 sq ft (172,000 sq m). The development, which will be completed later this year, is a low-rise mixed commercial scheme that will offer over 400 retail shops in 17 buildings, together with a boutique hotel of 100 keys.