Hongkong Land To Redevelop Swire House
HONG KONG, 8th September 1997 -- Hongkong Land Holdings Limited announced today that its subsidiary, Hongkong Land China Holdings Limited, is to proceed with the redevelopment of Swire House, its 35-year old commercial property in Hong Kong's Central business district.
The redevelopment will commence in October 1998, with completion expected in 2003.
The new 493,000 net sq. ft (650,000 sq. ft gfa) structure is provisionally to be named 11 Chater Road. It will comprise a 30-level office tower above a 3-level podium and a 3-level basement. New and upgraded pedestrian bridges will join the building to other Hongkong Land properties. The building will provide 474,000 net sq. ft of office space, with retail areas taking up the balance. Around 120 parking spaces will also be available.
At today's prices, the estimated construction cost of the new building, together with the upgrading of Hongkong Land's footbridges and other infrastructure, is expected to be some US$300 million. Net income from the Group's properties will be affected during the development period. In 1996, the net income from Swire House was some US$39 million.
Announcing the project, Hongkong Land's Managing Director, Mr Percy Weatherall, said, "The time is right for Hongkong Land to maximise the value of its oldest property in Hong Kong and develop a new and extremely attractive building. When completed, 11 Chater Road will deliver the opportunity for improved office rents compared with the current property.
"The building will be a new flagship for the Hongkong Land core portfolio. It will offer large floorplates of some 20,000 sq. ft together with the latest facilities to accommodate the high specifications of our multinational banking and financial sector tenants."
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For further information, please contact:
(852) 2842 8141
(852) 2842 8288
(852) 2543 5413
This announcement can be accessed through the Internet at "http://www.irasia.com/listco/sg/hkland" and is also available through "First Call".
Notes to Editors:
Hongkong Land Holdings Limited is incorporated in Bermuda, listed in London, Singapore, Australia and Bermuda, and has a sponsored American Depositary Receipt programme.
Hongkong Land Limited, which operates from Hong Kong, manages the business through two principal operating divisions.
Through Hongkong Land China Holdings Limited, the Group owns and manages some 5 million sq. ft of prime office and retail space in the heart of Hong Kong's Central business district and is developing a range of property and infrastructure activities in the Hong Kong Special Administrative Region and China.
Through Hongkong Land International Holdings Limited, the Group is also building a portfolio of property and infrastructure projects elsewhere in Asia, and is already active in Indonesia, the Philippines, Singapore and Vietnam.
11 Chater Road:
The possible redevelopment of Swire House was first mentioned in 1996 when the Hongkong Government approved, in principle, the redevelopment plans. In its 1996 Annual Report, the Company said that a decision on the timing of the project was expected to be made by its Board before the end of this year.
11 Chater Road
The new building is provisionally to be named 11 Chater Road. The shape of the site allows Hongkong Land to develop a building offering large column-free floor plates of approximately 20,000 sq. ft - much bigger than currently available in Central. This is designed to cater for growing demand from banking and finance tenants and will help underscore the importance of Hong Kong as a world financial centre.
The redevelopment site, comprising 37,100 sq. ft, is bounded by Chater Road, Pedder Street and Connaught Road Central.
New public space
The design of the property and its additional public facilities will make a very positive contribution to the environment in the heart of Hong Kong's Central business district.
An integral part of the redevelopment programme will be a major upgrade to the overhead walkways connecting Hongkong Land's other buildings to the new property.
The largest tenant is Cathay Pacific, which will relocate its new head office to Chek Lap Kok when the new airport is completed. By announcing this now, tenants effectively have a full 12 months to relocate. Hongkong Land would like to retain all its existing tenants, although, with 97% occupancy, capacity is limited.
11 Chater Road, Office Development, Fact Sheet