Swire Properties sees US$550 mil 2010 profit

HONG KONG: Swire Pacific said it expects its property arm to report an underlying net profit of at least HK$4.2 billion (RM1.77 billion) this year as it prepares for the unit's US$3 billion (RM9.67 billion) initial public share offering.

It would continue to focus most of its business in Hong Kong and China, it said in a filing to the Hong Kong exchange on Monday (April 19). Swire Properties has four representative offices on the mainland.

"We aim to replicate in the PRC (People's Republic of China) the success we have enjoyed in Hong Kong," Swire Properties said. "We believe we have gained valuable experience that will help us to generate further growth for our PRC business."

Swire Properties owns or has a stake in properties including the JW Marriott, Pacific Place and Conrad hotel in Hong Kong, and North Village in Beijing.

Swire Pacific shareholders would receive one share in Swire Properties arm for every 10 A shares held, while holders of Swire Pacific B shares would receive one Swire Properties share for every 50 held, the parent said in a separate filing to the Hong Kong exchange on Sunday (April 18).

"Swire Properties plans to use the net proceeds of the global offering accruing to it partly to fund investments in property projects in Hong Kong and the PRC," it said.

Swire Properties has already received approval from the listing committee of Hong Kong's stock exchange for the initial public offering, with trading scheduled to begin on May 14.

Real estate assets owned or being developed by Swire Properties had a total value of HK$183.8 billion at the end of March, with more than 87% of it concentrated in Hong Kong, the unit said in a separate filing early on Monday. -- Reuters