New international carriers join Swire Properties' Island East Matrix

As predicted in March this year, Swire Properties' Island East commercial portfolio continues to attract more international carriers to reinforce the position of its Matrix as the territory's gateway to the world. These international carriers now include Level 3, PSI Net, KDD Telecomet Hong Kong Ltd (KDD), Hutchison Global Crossing and Pacific Century Cyberworks (PCCW).

Mr Stephan G Spurr, Director and General Manager of Swire Properties, "We have built a virtual freeway at Island East. This seamless connectivity will shortly provide our tenants with competitive internet access and international communications services with unlimited bandwidth."

To date, over 300,000 sq ft has been taken up by these international carriers at Island East. PSI Net has committed to 14,300 sq ft at Lincoln House for their regional headquarters and 40,000 sq ft for their co-location centre in Somerset House recently, while Hutchison Global Crossing has taken up 40,000 sq ft in Somerset House.

Level 3 has leased a total area of 78,000 sq ft in Warwick House for its gateway and advanced data centre, reserving another 30,000 sq ft for further expansion.

PCCW's "Powerbase" operation in Somerset House occupies 77,000 s.f.

KDD is in the process of building its 31,500 sq. ft. facility management centre in Warwick House.

Negotiations with further data centre and gateway operators are in hand.

Mr Spurr went on: " In creating a truly neutral market place, we are offering our present and future tenants a wide choice of network connectivity options, using both satellite communications and fibre optic cable. I am hopeful that this, in turn, will encourage the Island East matrix to become a hub for the Internet Economy and attract more web-centric companies into the area."

"Demand for our office space continues to grow, and at the moment, is outpacing our construction of new developments. Our portfolio is now virtually fully let and rents have risen this year by 60%."

Construction of Cambridge House in TaiKoo Place is expected to be completed in the first quarter of 2003 and comprises 270,000 s.f. Cityplaza Two, situated on the old Mount Parker House site, and measuring 620,000 sq. ft. is due to receive its Occupation Permit in September, 2003.

Developed and managed by Swire Properties, the Island East Matrix currently consists of eight Grade A offices and three Techno Centres. The area is supported by a dedicated satellite farm and a unique fibre network which connects the individual properties in the portfolio together.

Visit Swire Properties Media Centre at www.swireproperties.com
Visit Island East website at www.islandeast.com.hk