Swire Properties said the transformation of Island East in Quarry Bay would be complete after the HK$10 billion redevelopment of three industrial buildings into two grade A offices, which are slated to open in 2021 according to chairman John Slosar. "We have already launched the next phase of the continuing transformation of Taikoo Place, starting with demolishing Somerset House last month. "Our cluster of buildings in Taikoo Place is already a vibrant hub of commercial and retail activities," Slosar said after the annual general meeting of Swire Properties. In 2021, the transformation of this hub is pretty much completed JOHN SLOSAR, SWIRE PROPERTIES "By the time we have replaced the three old industrial buildings with two magnificent grade A office towers in 2021, the transformation of this hub [in Island East] is pretty much completed." The redevelopment would provide Island East with more open area, Slosar said. With an open space equal in size to Statue Square in Central, he said the area would become a popular place to work, shop and live in. The company plans to turn Somerset House, Cornwall House and Warwick House into two new grade A office buildings, generating a gross floor area of two million square feet. Its Pacific Place Mall in Admiralty saw its sales growth remain flat for the three months to March because of a fall in spending by mainland tourists. Chief executive Martin Cubbon said a slowdown in sales growth had been evident for at least a year, but the retail market was still attractive. Cubbon said Swire Properties remained confident in the medium to long term. "We certainly see the relative instability [of the market] in terms of pricing. It is the case that many developers are offering discounts in the range of 5 to 15 per cent on new property projects," he said.