|Swire sells Festival Walk to Singapore's Mapletree
Swire Properties said it would sell its Festival Walk shopping complex to a unit of Singapore's state investment firm Temasek Holdings in a US$2.42 billion deal.
The property giant, a unit of conglomerate Swire Pacific, said Mapletree Investments had agreed to buy the sprawling shopping mall and office tower in Kowloon for HK$18.8 billion.
The sale, which Swire said was its biggest single property deal, is expected to close on August 18.
"Festival Walk has been a significant asset in our property portfolio, and has contributed strongly to Swire Properties' reputation as a leading blue chip property investor and developer,'' Swire Pacific's chairman Christopher Pratt said in a statement.
"An opportunity arose to realise the value of this investment."
Proceeds from the sale would partly be used to "continue (the firm's) major investment programmes,'' he added.
Mapletree said the deal was its first commercial property purchase in Hong Kong.
"This acquisition reinforces our strategy to scale up in key markets in Asia,'' the firm said in a statement.
In 2006, Swire bought the 50 percent stake it didn't already own in Festival Walk from conglomerate CITIC Pacific for HK$6.18 billion, in a deal that valued the complex at about HK$12.4 billion at the time.