Two New Buildings. Two Million Square Feet.
Swire Properties Limited has made an agreement with the Government of the Hong Kong Special Administrative Region to acquire its interest in Cornwall House in TaiKoo Place, Hong Kong.
The agreement covers exchanging ten floors of Grade A office space in Cityplaza Three (approximately 205,000 square feet of gross floor area) for the eight floors (approximately 187,000 square feet of gross floor area) in Cornwall House that are owned and occupied by the HKSAR Government.
The HKSAR Government will receive HK$537million, plus an additional amount that reflects any potential appreciation in office values between the date of the agreement and the date of construction completion of the second phase of the TaiKoo Place redevelopment.
Swire Properties will also fund relocation costs and expenses for the existing HKSAR Government departments to vacate Cornwall House, including the fit out of the 10 floors of Cityplaza Three, in a transaction that is expected to be completed by 30 December 2016.
This is an important transaction which will allow Swire Properties to proceed with our further transformation of TaiKoo Place through the redevelopment of three existing industrial buildings into two Grade A office towers,
said Martin Cubbon, Chief Executive of Swire Properties.
“The two new buildings will provide about two million square feet of leading edge Grade A office space of the scale and quality that will enhance Hong Kong’s status as a regional and international financial and business hub.”
The first phase of the approved redevelopment plan involves redeveloping Somerset House into a 51-storey office building while the second phase involves redeveloping Cornwall House and Warwick House into a single 46-storey office tower. The first new office building is expected to be ready by 2018.
The redevelopment will also provide a new landscaped square of approximately 69,000 square feet, approximately the same size as Statue Square in Central.