Swire signs an agreement for the Pudong megaproject in Qiantan

Taikoo Li Qiantan’s success left Swire wanting more

Swire Properties Managing Director Tim Blackburn wrapped up a successful trip to mainland China, securing a deal last week to develop a new mixed-use project in Shanghai’s Pudong district, inaugurating the second retail project of Swire luxury in Guangzhou and advancing its Taikoo Li shopping center project in Xi’an.

In Shanghai, Swire signed a letter of intent with Lujiazui Group to develop a 600,000 square meter (6.5 million square foot) mixed-use project in the Qiantan area. The development will be a new partnership for the Hong Kong-listed blue chip with government-owned developer Pudong District, following the launch of the Taikoo Li Qiantan shopping mall, a representative of Swire Properties told Mingtiandi.

“Swire Properties has always been firmly committed to Shanghai and optimistic about the long-term potential of the Pudong New Area. We want to further expand our investment in Pudong,” the Swire spokesperson said.

The site, called Qiantan Lot No. 21 by local media, is located to the east and opposite Taikoo Li Qiantan Shopping Center. The project in one of the government’s favorite development areas in Pudong aims for a gross floor area almost five times larger than Taikoo Li Qiantan.

Take over the land of Hongkong

A 2021 plan for the Qiantan project shows Lujiazui Group intends to develop two high-rise office buildings and four residential towers covering a total of 600,000 square meters, nearly double the scale of 322,000 square meters of Swire. HKRI Taikoo Hui JV in Jing An District.

Tim Blackburn Swire

Tim Blackburn, CEO of Swire Properties

The partnership with Swire gives Lujiazui Group, which is Qiantan’s lead developer, a second opportunity to develop the combined office/residential complex after another Hong Kong commercial property specialist pulled out of the project a while ago. more than three years.

Lujiazui Group had signed a cooperation framework agreement with Hongkong Land in 2015 to jointly develop the site with an estimated investment of around RMB 20 billion ($2.8 billion) in investment.

However, the deal was terminated in December 2018 because “certain conditions precedent were not met”, according to a statement from the Jardine Matheson Group division in March 2019.

Zhu Zhisong, the Pudong New Area party secretary, spoke highly of the Taikoo Li Qiantan mall during a meeting with Blackburn last Wednesday and urged Swire to invest more in the area to help Pudong become a hub of international consumption, according to a statement posted on the Shanghai government website.

map of qiantan

Pudong government woos foreign developers for its Qiantan projects

The 116,000 square meter Taikoo Li Qiantan mall opened in September last year with stores from 24 brands making their debut in China.

The Pudong government has focused on attracting regional and international developers to Qiantan, with US developer Tishman Speyer opened its mixed-use Crystal Plaza project there in 2018, and Shun Tak Holdings is currently building its New Bund 31 in the area formerly occupied by the Shanghai Expo.

In addition to signing the deal for the Shanghai project, on its mainland tour, Blackburn also made stops in Guangzhou, the capital of Guangdong province, and Xi’an, the capital of Shaanxi province.

Opening in Guangzhou

While in Guangzhou, Swire, together with the city government and Pearl River Enterprises Group, held a contract signing and groundbreaking ceremony for the Julong Bay commercial project on September 16, according to a report from the Guangzhou Daily.

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Swire and Pearl River, a local government-owned company, will jointly build a waterfront commercial project in Julong Bay, Bai’etan section of Guangzhou’s Liwan district, according to the report. Both companies had signed a letter of intent for cooperation for the Julong Bay project in October 2021.

The Julong Bay project is Swire’s second investment in the city after the company opened its first mainland project, Taikoo Hui Guangzhou, in the city in 2011.

Targeted continental expansion

Swire’s latest projects are part of a HK$100 billion ($12.7 billion) continental investment plan launched by Swire earlier this year targeting projects in Hong Kong, mainland China and Asia. from the South East.

Half of this initiative’s funds have been allocated to the mainland market, with a focus on retail-focused mixed-use developments in Tier 1 and “emerging Tier 1” cities, including Shanghai, Beijing, Guangzhou, Shenzhen, Chengdu and Xi’an.

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In March, Swire formed a joint venture to acquire a high-end retail site in Xi’an through a government land sale for RMB 2.57 billion. The 70:30 joint venture has agreed to invest up to RMB 10 billion in a mixed-use project dubbed Taikoo Li Xi’an, which would become the fourth commercial project Taikoo Li on the continent.

In August, Swire announced plans to open a luxury hotel in Shenzhen under the The House Collective brand.

Last Tuesday, Swire Properties and Sino-Ocean Group celebrated the 10th anniversary of their JV INDIGO shopping complex in Beijing. Swire representatives told the event that foundation work for INDIGO Phase II is underway, with the RMB 23 billion project expected to be completed in 2026.

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