Core Viewpoint - Hong Kong real estate stocks experienced significant gains towards the end of trading on October 20, with notable increases in share prices for several major companies [1] Company Summaries - Kowloon Development (01997.HK) saw a rise of 4.36%, reaching HKD 22.48 [1] - Hysan Development (00014.HK) increased by 3.01%, trading at HKD 16.09 [1] - Swire Properties (01972.HK) rose by 2.14%, with shares priced at HKD 21.92 [1] - New World Development (00017.HK) gained 1.36%, with a share price of HKD 7.43 [1]

Core Viewpoint - The Hong Kong real estate market is experiencing a positive shift, highlighted by a significant transaction involving Alibaba Group and Ant Group purchasing a commercial property for 6.6 billion HKD, marking the largest office sale in Hong Kong this year [1] Group 1: Market Reaction - Hong Kong real estate stocks saw an increase, with Wharf Real Estate Investment (01997) rising by 4.36% to 22.48 HKD, Hysan Development (00014) up by 3.01% to 16.09 HKD, Swire Properties (01972) increasing by 2.14% to 21.92 HKD, and New World Development (00017) gaining 1.36% to 7.43 HKD [1] Group 2: Transaction Details - On October 17, Alibaba Group and Ant Group announced their acquisition of the 13th floor of the One Island East building in Causeway Bay for 6.6 billion HKD, which serves as their headquarters in Hong Kong [1] - This transaction surpasses the previous record set in March when the Hong Kong Stock Exchange purchased the first phase of the Central Trading Plaza for 6.3 billion HKD, making it the largest office sale in Hong Kong this year [1] Group 3: Analyst Insights - JPMorgan released a report indicating that this large transaction will help stabilize the capitalization rate of Hong Kong's office market and reduce commercial real estate risks [1] - The report suggests that more leading companies from mainland China may be interested in purchasing office properties in Hong Kong for their regional or non-mainland headquarters [1] - The stabilization of Hong Kong's office capitalization rate is expected to benefit Hong Kong Land and Swire Properties, while the transaction may negatively impact Wharf Real Estate Investment due to the likelihood of Alibaba relocating from Times Square [1]

Core Viewpoint - Morgan Stanley reports that Hong Kong has recently recorded its largest office building sale in years, with the sale of the top 13 floors of One Island Central for HKD 7.2 billion to Alibaba and Ant Group [1] Group 1: Transaction Details - The property was sold for HKD 7.2 billion, with an estimated monthly rent of HKD 65 per square foot [1] - The estimated capitalization rate for the property is 3.3%, which is comparable to the average capitalization rates in Wanchai or Causeway Bay [1] Group 2: Market Implications - This large transaction is expected to stabilize the capitalization rates for office buildings in Hong Kong and reduce commercial real estate risks to some extent [1] - The transaction may negatively impact Wharf Real Estate Investment Company, as Alibaba's lease at Times Square is set to expire in 2028, likely leading to a relocation [1] Group 3: Future Outlook - Morgan Stanley believes that more leading companies from mainland China may be interested in purchasing office properties in Hong Kong as regional or non-mainland headquarters [1] - The stabilization of office capitalization rates in Hong Kong is expected to benefit Hongkong Land and Swire Properties [1]

Core Viewpoint - The expansion of Beijing Taikoo Li, part of the Yiti Port project, marks a significant investment by Swire Properties in mainland China, aiming to establish a new waterfront commercial landmark in Beijing [1] Summary by Sections Project Overview - The total area of Beijing Taikoo Li exceeds 860,000 square meters, featuring eight premium Grade A office buildings, a shopping center, a hotel, and green spaces [1] - The project components will be seamlessly connected through indoor and outdoor pedestrian walkways, linking the office buildings with retail areas, the hotel, and other facilities [1] Connectivity - The development will have direct access to the subway network, enhancing its connectivity and accessibility for visitors and tenants [1]

Core Insights - Beijing Taikoo Li has achieved structural completion and is set to open in phases by the end of 2026, marking it as Swire Properties' largest investment project in mainland China [2][3][4] - The project includes 8 Grade A office buildings and a high-quality shopping center, which is expected to boost the eastern economy of Beijing and upgrade the commercial real estate landscape [2][3] Project Overview - The total floor area of Beijing Taikoo Li exceeds 860,000 square meters, featuring 8 interconnected office buildings with a combined area of over 330,000 square meters [3] - The design of the office cluster emphasizes efficiency, flexibility, health, and innovation, incorporating wellness facilities to enhance employee well-being and productivity [3] Market Dynamics - Despite increased competition in the office market, Grade A office spaces remain the preferred choice for most tenants, with a net absorption of 87,000 square meters in Q3, leading to a decrease in overall vacancy rates to 19.7% [5] - Rental prices for office spaces have seen a decline, with a 2.9% drop in Q3, averaging 234.8 yuan per square meter per month [5] Retail Strategy - The retail component of Beijing Taikoo Li will introduce the first "Taikoo Li" brand shopping mall in mainland China, integrating with the existing Pacific Place shopping center to create a total retail area of approximately 150,000 square meters [7] - The retail space will focus on outdoor retail and waterfront leisure experiences, featuring multifunctional spaces for social interaction and community engagement [7][8] Future Outlook - The market remains optimistic, with a focus on cost-driven, quality-driven, and green-driven real estate strategies among businesses [6] - The upcoming retail properties in non-core business districts are expected to contribute to the market, with 394,000 square meters of new retail space anticipated to open in the next six months [8]

Core Insights - Swire Properties announced the structural completion of all eight buildings in the Beijing Swire Bay project, which is an expansion of the existing project, Yintai Center [1][3] - The project aims to create a vibrant new-generation commercial complex with a total floor area exceeding 860,000 square meters, integrating business and diverse lifestyle functions [3][5] Group 1 - The project includes eight premium Grade A office buildings, a high-quality shopping center, a hotel, green spaces, and comprehensive supporting facilities [3][5] - The components of the project will be seamlessly connected through indoor and outdoor walkways, linking office clusters with retail areas, hotels, and facilities, and providing direct access to the subway network [3][5] - The project is progressing as planned, with the facade of office buildings 1 to 4 already completed, and is set to open in phases starting at the end of 2026 [3] Group 2 - Beijing Swire Bay will introduce the first "Swire Bay" branded retail mall in mainland China, merging with the existing Yintai Center to create a comprehensive retail destination of approximately 150,000 square meters [5] - The new retail area will feature outdoor retail and waterfront leisure experiences, with landscaped squares and gardens providing multifunctional spaces for dining and social interactions, along with immersive cultural and artistic events [5] - The project is strategically located near ecological corridors and a planned sports park, with direct connections to a new boat dock, enhancing visitor experience and transportation convenience [5]

Core Points - Swire Properties announced the completion of structural topping out for all eight buildings in its comprehensive development project "Taikoo Place Beijing" located in Chaoyang District, Beijing [2] - The project will be an extension of the existing commercial project, Yintai Center, and will be renamed Taikoo Place Beijing [2] - The total floor area of the project exceeds 860,000 square meters, including eight Grade A office buildings, a high-quality shopping center, a new EAST hotel, and extensive green spaces [2] - The office building portion has a total floor area of over 330,000 square meters, with a space named "The Delphi" serving as a core for social and healthy living [2] - The project will feature seamless connectivity through indoor and outdoor walkways and direct access to the subway network [2] - Construction is progressing as planned, with the façade of office buildings 1 to 4 already completed, and the project is expected to open in phases starting from the end of 2026 [2] - Swire Properties' CEO Tim Blackburn stated that Taikoo Place Beijing will set a new benchmark for urban commercial and lifestyle hubs and provide a blueprint for future urban innovation [2] - The office business director, Don Taylor, expressed confidence that Taikoo Place Beijing will become one of the most forward-looking commercial centers in the city, attracting diverse tenants [2] - Upon completion, the new retail area will merge with the existing Yintai Center, creating a comprehensive retail destination with a total area of approximately 150,000 square meters [2] - The new EAST hotel will offer 318 guest rooms [2] Sustainability Focus - The project is centered around sustainable development, aiming to operate entirely on green energy and has received LEED and WELL Platinum pre-certification [3]

Core Insights - The Beijing Swire Town project has completed the structural topping of all eight buildings, marking a significant milestone for Swire Properties in the region [1] - The project is an expansion of the existing Yintai Center and will be renamed Beijing Swire Town upon completion [1] - The development aims to connect various components seamlessly, integrating office buildings with retail areas, hotels, and supporting facilities, while providing direct access to the subway network [1] Project Details - The project consists of eight interconnected office buildings with a total floor area exceeding 330,000 square meters [1] - The exterior curtain wall installation for office buildings 1 to 4 has been completed, indicating steady progress in construction [1] - The phased opening of the project is scheduled to begin at the end of 2026, contributing to Beijing's high-quality development goals and the construction of a world-class waterfront economic zone in the Chaoyang District [1] Business Strategy - The office space at Beijing Swire Town is designed to attract diverse tenants by integrating nature, art, and technology [1] - Swire Properties aims to enhance the overall appeal of the office cluster through innovative design and connectivity [1]

Core Insights - Swire Properties announced the structural completion of all eight buildings in the Beijing Swire Bay project, which is an expansion of the existing Taikoo Li project in Beijing [1][3] - The project aims to create a vibrant new generation commercial complex with a total floor area exceeding 860,000 square meters, integrating business and diverse lifestyle functions [3] Project Overview - The Beijing Swire Bay will consist of eight premium Grade A office buildings, a high-quality shopping center, a hotel, green spaces, and comprehensive supporting facilities [3] - The project will feature seamless connectivity between its components through indoor and outdoor walkways, linking office buildings with retail areas, hotels, and transport networks [3] Development Timeline - Construction is progressing as planned, with the façade of buildings 1 to 4 already completed [3] - The project is scheduled to open in phases starting from the end of 2026, contributing to Beijing's high-quality development goals and the construction of a world-class waterfront economic zone in Chaoyang District [3] Office Space Features - The office cluster will comprise eight interconnected buildings with a total floor area exceeding 330,000 square meters [3] - The office spaces will attract diverse tenants by integrating nature, art, and technology [3] Retail Component - The project will introduce the first "Taikoo Bay" brand retail mall in mainland China, merging with the existing Taikoo Li shopping center to create a total retail area of approximately 150,000 square meters [7] - The retail space will combine outdoor retail with waterfront leisure experiences, featuring multifunctional spaces for dining and social interactions, along with immersive cultural and artistic events [7] Connectivity and Community Impact - Beijing Swire Bay is adjacent to ecological corridors and a planned sports park, with direct access to a newly constructed boat dock, enhancing visitor experience and transportation convenience [7] - The project is positioned as the largest investment project in mainland China by Swire Properties, aiming to become an ideal destination for the co-prosperity of business and community [7]

Core Insights - The Beijing Taikoo Li project, part of the Yiti Port expansion, has completed structural topping for all eight buildings, marking it as Swire Properties' largest investment in mainland China [1][8] - The project aims to become a new landmark for waterfront commerce in Beijing, with a total area exceeding 860,000 square meters [3][5] Project Overview - The Beijing Taikoo Li will include eight premium Grade A office buildings, a shopping center, a hotel, and green spaces, all seamlessly connected through indoor and outdoor walkways [3][5] - The project will feature the first "Taikoo Li" branded retail mall in mainland China, integrating with the existing Yiti Port shopping center to create a comprehensive retail destination of approximately 150,000 square meters [5][8] Design and Facilities - A significant highlight of the project is the public space named "Delphi," which spans 19,000 square meters and includes flexible workspaces, a multifunctional hall, and one of the largest banquet halls in the city [9] - The development will also offer a fully equipped gym, swimming pool, landscaped squares, gardens, and spaces for outdoor dining and social interactions, along with immersive cultural and artistic activities [9] Connectivity and Infrastructure - The project is strategically located along the Ba River, which is part of a 2.3-kilometer waterfront space demonstration section that connects various commercial landmarks [11] - By the end of this year, the Ba River will be navigable, opening a 15-kilometer waterway [11] Timeline and Certification - The construction of the project is progressing as planned, with LEED and WELL Platinum pre-certifications already obtained, and the exterior curtain wall of buildings 1 to 4 completed [8] - The phased opening of the project is scheduled to begin at the end of 2026 [8]