Economic Observer reporter Zhang Yanan

In mid-2026, David Poraj Wilczynski will be appointed as the Chief Executive Officer of Swire Properties in mainland China, responsible for the business development and operational management of Swire Properties in mainland China.

Dai Kewei joined Swire Group as a management trainee in 2010 and has held management positions in the offshore maritime services business in the Middle East, West Africa, and Europe under Swire Group. Before becoming the CEO of Swire Properties in mainland China, he served as the General Manager of Development and Valuation at Swire Properties Hong Kong, responsible for the business development of investment and property buying and selling in the Hong Kong region.

With the continuous expansion of mainland business scale and increasingly diversified business layout, the strategic weight and operational complexity of Swire Properties' mainland sector have significantly increased. Dai Kewei took over a rapidly expanding and massive map. In 2022, Swire Properties announced a HKD 100 billion investment plan, half of which will be invested in mainland China. It is expected that by 2032, Swire Properties' total floor area in mainland China will double.

By mid-2026, over 90% of the HKD 50 billion investment plan to be invested in the mainland has been implemented. Seven large-scale projects in Shanghai, Beijing, Xi'an, Sanya, and Guangzhou are being simultaneously promoted, with most of them scheduled to open in 2027-2028.

This round of expansion by Swire Properties is completed under the most profound adjustment in the Chinese real estate industry. Starting from the second half of 2021, the industry liquidity crisis has spread, with a large number of real estate companies defaulting on their debts, project shutdowns, and delivery delays becoming the norm. The wave of layoffs has spread from private real estate companies to state-owned enterprises, and the entire industry is in a state of contraction.

Taikoo Real Estate has hardly been affected by this atmosphere. It does not pursue fast turnover or rely on residential sales to recoup funds. Instead, it uses its own funds or low interest financing to sustain a project for ten or twenty years, expanding Sanlitun Taikoo Village from the southern and northern areas to the western area. The northern area completed iterative upgrades earlier this year; After the completion of Phase II of Beijing Yidi Port, the entire project was renamed Taikoo Place, with a total floor area of 860000 square meters, becoming the largest project of Taikoo Real Estate in mainland China; Guangzhou Taikoo Hui has expanded from individual projects to Phase II and Phase III; In addition, Swire Properties' product line has expanded from Taikoo Li and Taikoo Hui to Taikoo Place and Taikoo Yuan, achieving a layout from commercial and office building operations to high-end residential development, and making its debut in residential development business in mainland China.

The advantage of viral development is that each project has undergone long-term cultivation, resulting in a strong community atmosphere and brand stickiness. The challenge is that with seven projects advancing simultaneously, organizational capabilities and talent reserves will inevitably be put to the test. Therefore, Swire Properties is hiring more talents for its headquarters team and various projects.

Swire Real Estate's circle of friends has also expanded from Ocean Group to China Life Insurance, Shanghai Lujiazui Group, the Pearl River Industry, Xi'an Chenghuan Cultural Investment and Hainan Zhongfang Shares. The common characteristics of these partners are: strong financial strength and the ability to hold assets for a long time.

Economic Observer reporter asked Dai Kewei: Will Swire Properties' asset size and income in mainland China exceed those in Hong Kong? His answer is concise: yes.

In August 2026, the real estate industry in mainland China ushered in a new mode of restructuring amidst intensive policy releases. The long-term holding, patient cultivation, and continuous iteration strategy of Swire Properties is more relevant than ever for mainland real estate companies.

|Dialogue|

Economic Observer: The investment quota of HKD 50 billion in mainland China has already exceeded 90% by the middle of this year. If calculated by the amount of funds, is there still a new Taikoo Li worth looking forward to?

Dai can be:The current top priority is undoubtedly to deliver existing projects under construction with high quality. We have new Sanya Taikoo Li projects, Guangzhou Julongwan Taikoo Li and Xi'an Taikoo Li, as well as expanding Qiantan Taikoo Li and Beijing Taikoo Fang. At present, there are many ongoing projects being simultaneously promoted, and the primary task is to execute and deliver, while always putting safety first. These projects will all open gradually from 2027 to 2028, so this is a very busy period.

At the same time, we will continue to seek new project opportunities. A Taikoo Li project usually takes a long period of time from the initial site selection to the final completion and opening. We will continue to search for land parcels that match the company's investment standards and expertise, usually located in high-quality areas of first tier cities and new first tier cities. We will consider what value the project can bring to the urban texture and appearance, what the local community needs, and how it aligns with the development direction of the local government before advancing the entire development process.

At present, we are focusing on implementing a HKD 50 billion investment plan. On this basis, we will also continue to enrich our project reserves. We have a long-term outlook on the mainland Chinese market and see positive development trends from it.

Economic Observer: Almost every Taikoo project will continue to expand in size over time. Will Swire Properties increase its investment quota in mainland China in the future?

Dai can be:The expansion and optimization of existing projects have always been an important part of our ongoing efforts to create world-class, retail focused experiences for our customers. As long as it can continuously bring new experiences and surprises to customers, it is a kind of success; Asset upgrading and expansion have always been important components of it.

Here are two typical cases: the first phase of Guangzhou Taikoo Hui is an existing project; The second phase has a relatively small size and more fashionable features, which is expected to attract a new generation of customers; The third phase will significantly expand the overall scale of the first phase project. Similarly, Qiantan Taikoo Li is also undergoing expansion, adding approximately 150000 square meters of retail space. These expansions enable us and our retail partners to continuously create richer and more exciting consumer experiences, attracting customers to keep coming back.

Economic Observer: Will Swire Properties' asset size and revenue in mainland China surpass those in Hong Kong?

Dai can be:The answer is affirmative. With the implementation of a HKD 50 billion investment plan in mainland China and the upcoming launch of a number of new projects, our total gross floor area (GFA) in mainland China will double, surpassing that of Hong Kong. With this scale growth, revenue will also increase accordingly.

We have firm confidence in both the Hong Kong and mainland markets and will continue to invest in them for the long term. We will continue to seek opportunities in all core markets, including expanding and upgrading existing assets as well as new projects. With the advancement of investment, the importance of mainland business in the company's asset portfolio is also constantly increasing.

Economic Observer: In its 2024 annual report, Swire Properties predicted that office rents in mainland China would decline and have not yet bottomed out. Has this prediction changed now? Why did Beijing Taikoo Place launch such a large supply of office buildings at a time when the vacancy rate is high?

Dai can be:In various cities in mainland China where we have established our office building business, the supply and demand patterns may vary, and the market cycles in different regions may also be different. Objectively speaking, the market environment is quite challenging, but from our asset portfolio perspective, the overall project still maintains a high occupancy rate, which is a very positive signal. Even in the stage of market pressure, as long as we have high-quality and well managed products, and provide tenants with carefully crafted high-quality office experiences, we can still maintain a stable business prospect.

Firstly, regarding Beijing Taikoo Place, we still have a positive outlook on the long-term prospects of the market, and it is based on this judgment that we have made this investment. This is also the largest single investment by Swire Properties in mainland China. We always focus on the long term, and this project is also a reflection of our long-term philosophy.

Secondly, there is a market trend of "quality is king" where office building tenants concentrate on high-quality projects. Similar to the selection logic of retail consumers, the needs of office tenants are also constantly changing. Beijing Taikoo Place has outstanding product advantages: the office buildings are connected to each other and seamlessly integrated with retail facilities. In addition to office space, the project also brings together diverse scenarios such as dining, culture, leisure, and healthy living. The project is adjacent to the Ba River, and the waterfront space has been carefully crafted. This will become a place where people are willing to come for work, shopping, dining, and enjoying a healthy lifestyle. I also live and work here on a daily basis, so I am very much looking forward to this project.

Economic Observer: I saw news on the market that Pop Mart has purchased a certain office building in Taikoo Place. Is this information true? What kind of industrial landscape do you expect tenants or owners of Taikoo Place office buildings to form?

Dai can be:I am unable to comment on leasing or other related transactions. But it can be revealed that the project is nearing completion, and the first plot will be completed before the end of this year, welcoming office tenants from 2027 onwards.

The market demand for this product comes from multiple industries. There are both multinational companies expressing their intentions and local enterprises from different industries paying attention. Many domestic companies expanding their business globally are expanding their international influence, and I believe they would be happy to work and live here. The overall design of Beijing Taikoo Place, the connectivity between various buildings, and the environment that is close to nature will make it an ideal place for different industries to gather and collaborate.

Economic Observer: Swire Properties took about half a century to build Taikoo Place in Hong Kong, and renamed Beijing Yidi Port as Beijing Taikoo Place, using the same name. What are the differences in its positioning and strategy between the two cities?

Dai can be:The Taikoo Place brand represents a high-quality comprehensive development project with international high standards and office leadership. Two Taikoo Place have similarities: they are both typical cases of urban renewal, developed from industrial land and bringing new spatial textures and community ecology to the city.

The difference is that, like all projects of Swire Properties, we will deeply understand and explore local characteristics, culture, and historical heritage, and integrate them into project design. Beijing Taikoo Place is adjacent to rivers and connects with existing shopping malls, presenting different characteristics from Hong Kong Taikoo Place; But both are high-quality places suitable for work and leisure life.

Economic Observer: The assets under Swire Properties are all city level commercial projects in core cities. In recent years, the performance of the retail industry has undergone significant changes. What kind of curve does Swire Properties perceive that consumption has gone through?

Dai can be:Looking at the world, there is a trend in physical commerce where consumers are increasingly valuing rich experiences and stronger emotional connections, hoping to gain freshness every time they come to a project. For us, the owners and operators of physical businesses, this means that more content needs to be provided. The capabilities and experience of Swire Properties perfectly align with this trend. We will search for land parcels with unique endowments to create differentiated projects, while fully integrating local culture, historical heritage, and practical needs. Through long-term operation, the project will gradually grow into an important consumer destination and mature commercial community.

From our project portfolio, almost all shopping centers are experiencing growth in sales and foot traffic. Part of the growth comes from important upgrades and the entry of iconic brands or events, such as the revitalization and upgrading of Sanlitun Taikoo Li and the entry of luxury brand flagship stores, as well as the new concept landmark "Louis Vuitton" at Xingye Taikoo Hui. But more growth comes from the continuous careful construction and operation of the retail team. Their top-notch professional capabilities are always creating new experiences for customers, deeply understanding new trends and adapting to changes in local preferences, and providing content accordingly.

The second advantage comes from the scale of the project. Beijing Taikoo Place will add a large area of retail space; Both Qiantan Taikoo Li and Guangzhou Taikoo Hui are undergoing large-scale retail expansion; The scale of new projects in Sanya, Xi'an, and Guangzhou is also considerable. Therefore, we can provide a richer combination of business formats, including luxury brands and high-end retail, as well as lifestyle and leisure entertainment content. This project scale and complete ecosystem drive our business performance to continue to improve.

Economic Observer: Beijing Sanlitun Taikoo Li North District has undergone a comprehensive upgrade towards high luxury. What opportunities does Taikoo Real Estate see?

Dai can be:Since we started operating Sanlitun Taikoo Li, it has gradually grown into an international consumer destination, and continuous iteration and upgrading are important components of the project's long-term development. It is the long-term community building and management that have continuously evolved it into today's international consumption landmark. The investment in the northern region and the entry of numerous luxury brands are also opportunities brought by years of deep cultivation and the creation of landmark consumption hubs.

The overall scale of Sanlitun Taikoo Li also allows the project to form differentiated zones, with the northern district gathering luxury brands and the southern district maintaining a distinct trendy attribute. We constantly introduce attractive new concepts and first stores, whether they are domestic or international brands. This rich brand portfolio not only makes consumers willing to visit repeatedly, but also makes brands willing to continue to lay out here. This commercial ecosystem has also integrated into the texture of the city.

Economic Observer: Shanghai's Zhangyuan is Taikoo's first project that does not hold property rights and is only responsible for revitalization and operation. Will this light asset model become Taikoo's second main line of expansion in mainland China?

Dai can be:The HKD 50 billion mainland investment plan is sufficient to demonstrate that our business is primarily focused on a heavy asset model, rather than a light asset model. I believe that this overall direction will not undergo fundamental changes. The Zhangyuan light asset cooperation has a great advantage in that it is adjacent to our existing projects, allowing us to continue creating world-class retail experiences and bringing tangible value to customers, the consumption vitality of the area, and the surrounding commercial ecology.

Zhangyuan is a highly representative historical and cultural carrier of Shanghai, and it is a very special project. We are honored to participate in its revitalization and apply the community building experience of Swire Properties to this unique project. Light assets are not our core strategy, but regardless of whether it is light or heavy assets, high-quality opportunities like Zhangyuan are worth seizing.

Economic Observer: Lujiazui Taiguyuan Yuandi is Taikoo Real Estate's first residential development project in mainland China, with a cumulative sales revenue of 17.7 billion yuan. Does this report meet expectations? Residential transactions account for a quota of HKD 20 billion in the HKD 100 billion plan. Does this quota include mainland business?

Dai can be:Firstly, we are satisfied with the sales performance of Lujiazui Yuandi. At present, 357 out of 378 units have been sold, with a turnover rate of 94%. The market response has been very positive. We have brought the concept that we have always adhered to in the retail and office fields to residential projects: to create unique world-class products, hoping to add highlights to the urban texture of Shanghai.

In addition, the HKD 20 billion investment plan for residential development and sales includes projects in mainland China. We are pleased that the first residential project in mainland China has delivered such a result, and we will continue to seek suitable opportunities in the future.

Economic Observer: Is residential development a long-term mainline business or an opportunity oriented business in mainland China? Is the choice of land acquisition city based on existing projects of Swire Properties or will it be developed separately in a specific city?

Dai can be:Residential development should always be judged based on specific land parcels and location conditions. We will pay attention to opportunities around existing projects, or at least choose cities where Swire Properties has already entered and has a certain level of brand awareness. We will search for plots with unique conditions to create differentiated products and bring valuable new projects to the market.

Whether it's retail, office buildings, or residential, our philosophy is the same: we insist on creating high-quality, differentiated products, understanding the needs of local customers, and doing our best to implement them. The residential business will also continue this approach. We will carefully select and continuously evaluate potential opportunities.

Economic Observer: What is the style of Swire Properties' residential development business? Swire Properties is also cooperating with mainland enterprises. Will you have your own pace or will you acquire land and sell it relatively quickly?

Dai can be:Lujiazui Taiguyuan Yuandi is a great example of our successful collaboration with strong partners. We are well aware that the development and sales of residential properties require strong execution capabilities. But no matter what, we will attach great importance to design and quality, ensuring that the final product delivered is of the highest level, which is a very clear primary principle.

Meanwhile, the residential market is different from holding investment properties: residential properties are built for sale, so the sales end must have a comprehensive execution plan. We have built multiple residential projects in Hong Kong, and our team has mature experience in balancing high-quality products, design, engineering quality, and reasonable delivery cycles. We have proven that this model is feasible in Hong Kong, and we will also adhere to this standard in mainland China.

(Author Zhang Yanan)