Swire considers residential brand boost in mainland

Swire, a Hong Kong-based developer, owner and operator of mixed-use commercial properties, said it may consider introducing its residential brand to the mainland in addition to its commercial ones.

"We have a strong residential brand in Hong Kong and Miami, and we are open to opportunities in the mainland if the right opportunity comes along," said Tim Blackburn, CEO at Swire Properties for Chinese mainland, on Tuesday.

"The company is exploring the Guangdong-Hong Kong-Macao Greater Bay Area to kick off its residential projects in the mainland, considering the geographical advantages as well as governmental policy," he said.

"We have been studying the government's development policy in the region and once we understand the impact of the government's cooling measures, we will evaluate opportunities in cities like Guangzhou and Shenzhen."

Most of Swire's projects in the mainland have been commercial and investment properties during the past decade's development, and the company sees opportunities in the residential sector in the mainland too, Blackburn said.

According to Blackburn, Swire's past investments in the mainland are bearing fruit and it is committed to long-term development in the mainland.

Blackburn said the company will keep its "expansion radar" on for good opportunities that fit in with its long-term strategy and business model, and will mainly focus on the mainland's tier-one cities.

With the real estate market seeing more demand for high-quality design, environment and operational excellence, Swire would be very interested to find new projects in first-tier cities or landmark sites to focus on its strength - development of mixed-use properties, he said.

Swire has conducted significant business with local governments to improve the environment and landscape of local cities, including the Taikoo Li Sanlitun in Beijing and the Sino-ocean Taikoo Li in Chengdu.

Rather than focusing on demolition and construction of new sites, Blackburn said regenerating existing inventory and upgrading interesting locations in downtown areas may represent more opportunities.

Swire said it has benefited enormously from the mainland's reform and opening-up during the past 10 years.

"The impact of the policy on the economy has been phenomenal and the opening-up is good for property development, with the rising middle-income earners and rapid urbanization," he said.

Swire, which has been bringing to life brand new retail and leisure destinations, said its large-scale development in the mainland is a response to the growth of middle-income consumers in recent years.

The company has identified the continuing and accelerating trend of the growing ranks of middle-income consumers, which reinforces the investment it is making in high-quality developments, Blackburn said.