Property Division

Established in 1972, Swire Properties Limited (“Swire Properties”) is a leading developer, owner and operator of mixed-use, principally commercial properties in Hong Kong and Mainland China, with a record of creating long-term value by transforming urban areas. Swire Properties' business comprises three main areas: investment properties, hotel investment and property trading. The shares of Swire Properties were listed on The Stock Exchange of Hong Kong Limited in 2012.

 

SWIRE PROPERTIES' BUSINESS COMPRISES THREE MAIN AREAS
01

Investment Properties

The property investment portfolio in Hong Kong comprises office and retail premises and serviced apartments and other luxury residential accommodation in prime locations. In Mainland China, Swire Properties owns and operates major commercial mixed-use developments in Beijing, Shanghai, Guangzhou and Chengdu. In the USA, Swire Properties is the primary developer of a mixed-use commercial development at Brickell City Centre in Miami, Florida.

02

Hotel Investment

Swire Properties wholly owns and manages, through Swire Hotels, two hotels in Hong Kong, The Upper House and EAST, Hong Kong. It has a 20% interest in each of the JW Marriott, Conrad Hong Kong and Island Shangri-La hotels at Pacific Place and in the Novotel Citygate in Tung Chung.

In Mainland China, Swire Hotels manages three hotels. The Opposite House at Taikoo Li Sanlitun in Beijing is wholly owned by Swire Properties. 50% interests are owned in EAST, Beijing at INDIGO in Beijing and in The Temple House at Sino-Ocean Taikoo Li Chengdu. At TaiKoo Hui in Guangzhou, Swire Properties owns a 97% interest in the Mandarin Oriental, Guangzhou.

In the USA, Swire Properties wholly owns and manages, through Swire Hotels, EAST, Miami and owns a 75% interest in the Mandarin Oriental in Miami.

03

Property Trading

Swire Properties' trading portfolio comprises a luxury residential development fully pre-sold on Hong Kong Island and completed developments available for sale in Hong Kong, Mainland China and Miami, USA. There are also land banks in Miami and Fort Lauderdale in Florida in the USA.

Approach to Sustainability

Swire Properties aims to be the leading sustainable development performer in its industry by 2030. To this end it has adopted its SD 2030 strategy. The strategy has five pillars: Places, People, Partners, Performance (Environment) and Performance (Economic).

The Taikoo Place redevelopment in Quarry Bay, in the Eastern District of the Hong Kong Island, is an example of the SD 2030 strategy in action. Swire originally had sugar and dockyard businesses in the area. The dockyard closed in the 1970s. The area has since been transformed into a major mixed use commercial centre. The current redevelopment of Taikoo Place continues that transformation. Under the redevelopment:

  • Elevated walkways and better street design will improve connections between buildings and to and from public transport;
  • Buildings have been placed so as to create wind corridors which will permit natural ventilation. Green spaces and planted areas are intended to reduce temperatures;
  • Tenants’ used cooking oil will be converted into biodiesel. The biodiesel will generate energy equivalent to 2% of the development’s energy requirements; and
  • With the National University of Singapore and the Hong Kong Polytechnic University, a dual-level roof combining green areas and a solar photovoltaic system is being developed.

For a full account of Swire Properties’ SD 2030 Strategy and its sustainability performance in 2016, please refer to the Swire Properties Sustainable Development Report 2016.

PERFORMANCE HIGHLIGHTS
HEALTH & SAFETY
41%
Lost day rate reduction in 2016 compared with 2015
DIVERSITY & INCLUSION
50%
of senior management positions held by women in 2016
TRAINING & DEVELOPMENT
> 65,000
Total training hours in 2016
ENERGY
18.9%
reduction in energy consumption despite 16.1% increase in gross floor area of the Hong Kong portfolio (from 2001 to 2016)
WASTE
3,317
Tonnes of waste recycled in Hong Kong commercial portfolio in 2016
TENANTS
~2.8
Free energy audits offered to Hong Kong office tenants since 2008, identifying potential annual energy savings of ~2.8 m kWh
COMMUNITY
1,500
community ambassadors volunteered 75,200 hours of service in 2016
COMMUNITY
75,000
650 community activities benefited around 75,000 people in 2016

Group Level Material Topics

Performance in relation to the material topic which is highly significant at a group level is shown below:

Energy

Swire Properties designs, constructs and operates properties with a view to reducing electricity use. Ambitious energy reduction targets are set and monitored.

Hong Kong

From 2001 to 2016, Swire Properties achieved an 18.9% reduction in energy consumption despite a 16.1% increase in gross floor area of its Hong Kong portfolio. In 2015, it set a target to reduce the annual energy consumption in its Hong Kong portfolio by 64 million kWh per year by 2020, from its amount in 2008. By the end of 2016, a reduction of 49 million kWh had been achieved.

Energy use per square metre in the Hong Kong portfolio decreased by 30% to 152 kWh per year between 2001 and 2016.

Improvements have been made in the energy efficiency of airconditioning, lighting and elevators. An ISO 50001 compliant energy management plan helps tenants to manage energy use and reduce energy consumption. Free energy audits are offered to office tenants.

Mainland China

Swire Properties has set a target to reduce the annual energy consumption in its Mainland China portfolio by 23 million kWh per year by 2020, from its annual amount when data were first collected. Energy use per square metre in the Mainland China portfolio decreased by 30% to 156 kWh per year between 2010 and 2016.

In 2016, the energy management systems at Taikoo Li Sanlitun in Beijing and at TaiKoo Hui in Guangzhou achieved ISO 50001:2011 certification.

Solar photovoltaic panels have been installed at INDIGO in Beijing and at TaiKoo Hui in Guangzhou. The panels are expected to generate 81,000 kWh per year of electricity. Free energy audits have been provided to tenants at Taikoo Li Sanlitun in Beijing and at TaiKoo Hui in Guangzhou.

More information on sustainability matters related to the Property Division can be found in other sections of this report and in the individual companies’ sustainable development reports, which can be found here.


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