Swire Properties’ HK Office Portfolio

Swire Properties’ HK Office Portfolio Sees Good Returns

HONG KONG – Despite more new office stock and stiffer competition, Swire Properties’ office portfolio in the Chinese territory recorded robust returns for the whole of 2021, according to filings published on the local bourse (HKEX) on Thursday (10 March).

The real estate company revealed that its office portfolio in Hong Kong showed resilience in spite of a sluggish market and rising competition from office buildings in Central and Kowloon East that is exerting downward pressure on office rents.

“However, the prospect of the reopening of the border with the Chinese Mainland and strength in the financial markets should increase the take-up of Grade A space, particularly by banks and financial services companies.”

“Swire Properties’ office portfolio remains well placed, with high occupancy and stable demand from a wide range of tenants,” said the company in a filing with the Hong Kong Exchanges and Clearing Market (HKEX).

Aside from that, the property firm said that pre-leasing at its new Grade A office tower, Two Taikoo Place, is progressing well. Notably, the office development is poised to be unveiled later this year.

“Swiss private bank Julius Baer has been secured as an anchor tenant, which highlights market confidence in Taikoo Place. In Admiralty, the Company is making good headway on our new Grade A office building opposite Three Pacific Place,” it noted.

Meanwhile, Swire Properties announced that its recurring underlying profit for the entirety of 2021 increased to HK$7,152 million from HK$7,089 million in the preceding year. The better performance reflected the firm’s robust retail performance in the Chinese Mainland and lower losses from its hotel business

However, underlying profit attributable to stockholders fell to HK$9,541 million in 2021 from HK$12,679 million in 2020 mainly because of the lower profit arising from the divestment of non-core assets in Hong Kong.

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