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HK office building market rebounds: Swire Properties' CEO

Published: 21 Jun 2009 17:32:52 PST

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Jun. 22, 2009 (China Knowledge) - Rent in office buildings has bottomed out and the office market is on the rebound in Hong Kong, said Martin Cubbon, CEO of Swire Properties, a real estate subsidiary of Swire Pacific Ltd<0019><0087>, sources reported.

One of Swire Properties' office buildings, One Island East, located in eastern Hong Kong, is currently 91% rented, while the firm's other commercial properties are 98% to 99% rented, Cubbon added.

Cubbon attributed the fast market recovery in Hong Kong to the Chinese government's stimulus package and timely macroeconomic measures. Swire Properties is looking for opportunities to expand in mainland China, but currently has no plans for land purchases.

In Sanlitun, Beijing, the enterprise has an 80% stake in a mixed-use property project called The Village, while Gateway China Fund holds the remaining 20% stake.

Swire Properties has rented 42% of the northern part of The Village and 92% of the southern part. The firm has delayed the opening of the northern part, which has a potential floor area of 48,000 square meters (sq m), to September this year.

The general manager of Swire Properties said that the firm will apply for permission to build a 37-story apartment project with an estimated height of 170 meters in Sai Wan Terrace, Hong Kong.

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