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24 Oct 2022

Swire Properties Announces Investment with China Tourism Group Duty Free Corporation to Develop Sanya Retail Project

Swire Properties is pleased to announce that it will partner with CDF Investment & Development Co. Ltd (“CDFID”), a subsidiary of China Tourism Group Duty Free Corporation Limited (“CTG Duty Free”), the world’s largest duty-free operator, to develop a retail landmark in Sanya, Hainan Province. Located in the heart of Haitang Bay National Coastal Recreation Park, this will be the Company’s eighth large-scale commercial development in the Chinese Mainland. Swire Properties and CTG Duty Free will each hold a 50% interest in the project. 

A joint venture company has been established to develop the site as a premium, resort-style, retail-led development, including underground parking and other ancillary facilities. The investment was announced today after the joint venture company successfully acquired (via government land listing-for-sale) a site for commercial development in the Haitang District of Sanya, at a total price of RMB1.308 billion. The project is expected to be completed in phases from 2024.

“We are very pleased to be partnering with CTG Duty Free on this significant retail property development in Sanya.  Thanks to its tropical climate and abundant natural resources, and accelerated by the Hainan Free Trade Port policy, Sanya has fast become one of the most popular travel and leisure destinations in China,” said Tim Blackburn, Chief Executive of Swire Properties. “This site presents an exciting opportunity to develop a high-quality retail complex to satisfy the growing demand for a premium retail experience in the region.

“In addition, the 20th CPC National Congress’s report proposed to accelerate the development of the Hainan Free Trade Port, while promoting quality development and strengthening the fundamental role of consumption in the country’s economic growth. I am confident that, with this policy support and in partnership with CTG Duty Free, we will create a world-class retail landmark which will further elevate Hainan’s standing as a regional tourist destination.”

“We look forward to collaborating with Swire Properties in Sanya to jointly develop a world-class, upscale commercial project,” said Peng Hui, Chairman of CTG Duty Free. “This new development will have positive synergy with Phases I and II of the Sanya International Duty Free Complex, and provide a premium retail experience alongside duty-free shopping in the area. We believe this combined experience will enrich Sanya’s travel and leisure offerings, further attracting overseas visitors and putting Haitang Bay on the map as a tourist and shopping destination.”

“This will be our first ever resort-style retail complex. The design will embrace Sanya’s tropical coastline and unique ecological landscape, whilst taking inspiration from the traditional fishing settlements of the indigenous Dan community,” said Han Zhi, Director, Retail of Swire Properties. “With the 22km coastline along Haitang Bay as a backdrop, we intend to curate a unique experience featuring premium retail with arts and cultural elements to create a major luxury travel destination in Hainan.”

Located in Haitang District, the new development will be Phase III of the Sanya International Duty-Free Complex, covering a total site area of approximately 200,000 sqm. The site enjoys excellent road, rail and air connectivity to Sanya Phoenix International Airport and Sanya Railway Station.  The new development will also be connected by a network of bridges to the Sanya International Duty Free Complex, the leading duty-free mall in China. 

Hainan Province is the largest special economic zone in China. The development of the Hainan Free Trade Port (FTP) commenced in 2020 and a pan-island customs clearance operation will be set up by the end of 2025. Sanya is a key component of the strategy to develop Hainan into a high-level free trade port and an international tourism and consumption hub.

This new project in Sanya is part of Swire Properties’ strategic plan to invest a total of HKD100 billion in its core markets, including South-east Asia, Hong Kong and the Chinese Mainland, to drive the Company’s future growth over the next 10 years. Approximately HKD50 billion will be invested in the Chinese Mainland, with an aim to double the Company’s attributable gross floor area in the region.  Apart from Sanya, this year Swire Properties has announced Taikoo Li Xi’an and is exploring two potential retail-led projects in Liwan District, Guangzhou and Pudong District, Shanghai.

 

.Artistic impression of the Sanya retail project