Swire Properties Limited (“Swire Properties”), a wholly owned subsidiary of Hong Kong listed Swire Pacific Limited, announced today that it has entered into an agreement with the Bank of China Guangdong Branch for a RMB2 billion five-year term loan facility for its subsidiary, TaiKoo Hui (Guangzhou) Development Company Limited. The loan is to be guaranteed by Swire Properties.
The funds will be used in the development and construction of the TaiKoo Hui, mixed-use property project located at the junction of Tianhe Road and Tianhedong Road, Tianhe District, Guangzhou. The project has a site area of 527,000 sq ft (49,000 sqm) and on completion will comprise a total floor area of 4.37 million sq ft (406,000 sqm). It consists of a prime shopping centre, two office towers, a cultural centre and a hotel, the Mandarin Oriental. The project is due for completion, with a phased opening, starting in 2010.
Gordon Ongley, Swire Properties' Chief Executive Officer – Mainland, said, "We are very pleased to have concluded this transaction with the Bank of China, the first bilateral deal of this size in Renminbi for Swire Properties with a leading Mainland bank."