Swire Properties unveils HK$15 billion Taikoo Place expansion plan
Swire Properties will invest HK$15 billion over five years to expand Taikoo Place and pursue a unified 'One Taikoo' business district. The plan includes redeveloping three sites into Grade A offices, with construction starting in 2027 and completion by 2032.
Swire Properties (1972) will invest HK$15 billion over the next five years to expand and enhance the Taikoo Place area, while pursuing the idea of One Taikoo – bringing Taikoo Place and Cityplaza together as a single global business and lifestyle district, according to Tim Blackburn, chief executive of Swire Properties.
“We are creating a more complete mixed-use destination that will strengthen Taikoo Place’s appeal to businesses and talent … and support enduring value over the long term,” he added. Blackburn also asserted that Hong Kong remains core to Swire’s strategy, and the developer is “fully committed to the city’s long-term role as a premier international business and financial center.”
Swire plans to first redevelop Sea View Building, Hoi Wan Building and Chinachem Exchange Square into a next-generation Grade A office tower on Tong Chong Street with harbour views, connecting directly to Taikoo Place through the precinct’s elevated walkway. Groundbreaking will begin next year, whereas completion is expected in 2032. Preliminary discussions with potential end-users are already in progress.
The 800,000-square-feet site at King’s Road and Shipyard Lane will also potentially be redeveloped as a premium Grade A office tower, to meet future demand for quality office spaces. Blackburn expects healthy demand for premium triple-A offices by 2032, citing that existing stock for core office areas is ageing and there is a requirement for new stock to meet demands, adding that the decentralisation trend where tenants are looking for better value and products will be a strong theme in the next five years.
Swire is currently developing a residential project along Pan Hoi Street, providing 850 residences in three towers above a retail podium, with handover scheduled for 2029. The group also enjoys spill-over effects from Central, boosting rental performance in Taikoo Place, Blackburn said.
As for the Chinese mainland market, the developer has seven major projects due for completion by late 2028 across Shanghai, Beijing, Guangzhou, Sanya and Xi’an – the start of what they call their “harvest stage,” according to Blackburn. “More than 90 per cent of our investment allocation for the Chinese mainland is now committed to large-scale, retail-led developments,” he added. “Building on the strength of the Taikoo Li and Taikoo Hui brands, this pipeline is expected to double our mainland GFA [gross floor area] by 2032.”
Swire also launched the Taikoo Place brand in Beijing last week, marking the next stage in INDIGO mall’s transformation into a mixed-use destination in Chaoyang District. The company has committed close to 70 per cent of the capital of its HK$100 billion investment plan launched in 2022.