Plan to redevelop Swire House

PUBLISHED : Wednesday, 31 July, 1996, 12:00am
UPDATED : Wednesday, 31 July, 1996, 12:00am

Jardine property arm Hongkong Land has submitted a proposal for government approval to redevelop its 34-year-old Swire House in Central.

Executive director of property development Robert Wong said the proposed plan was part of the company's established strategy to raise the value of its properties through refurbishment or redevelopment.

He said a proposal had been submitted to the building authorities but he would not divulge details of the plan.

The 23-storey Swire House, located in core Central and completed in 1962, comprises 428,000 square feet of office and retail space on a 37,000 sq ft site.

Analysts said the property could be redeveloped with a maximum permitted plot ratio of 15 times. But the ratio could be raised to 18 times through special arrangements such as designating certain spaces for public use.

Given a plot ratio of 18, a redevelopment of Swire House could provide a total gross floor area of about 666,000 sq ft, analysts said.

Hongkong Land also intended to seek government permission to build additional floors in Gloucester Tower, one of the two office towers in The Landmark. Plans to redevelop a staff quarters in Western were being pursued, too.

Besides the potential redevelopment of existing properties, the group has demonstrated renewed interest in expanding its portfolio. It entered into a deal to buy Stanley Court in Stanley for $295 million last week.

Mr Wong said the luxury residential property, comprising 21 houses, had a total floor area of 43,600 sq ft, with average rents of about $40 per sq ft a month.

He said the market should not be surprised by the acquisition because the company had previously indicated its interest in the luxury residential market.

Hongkong Land bid for a luxury residential site in Stubbs Road, Mid-Levels at a government auction last December although it failed to get the property.