120,000 sq ft of New Office Accommodation Leased in Island East

Swire Properties announces today (Tuesday, 11 July 2006) that two sizeable office leasing transactions were concluded the previous June in its Island East portfolio.

The new lease commitments involved DBS Bank and American International Assurance (AIA), each signing to lease approximately 60,000 sq ft.

DBS will set up its new office in Somerset House, whilst AIA, which has an existing office in Cornwall House, TaiKoo Place, is expanding to occupy the final remaining space in Devon House which becomes 100% fully let as a result.

In consequence of these two transactions, Swire Properties' total occupancy in Island East also increases to 97%, as compared to 94 % at the beginning of 2006.

Swire Properties Director & General Manager, Stephan Spurr said:

"We are delighted to welcome these two global companies to our portfolio and look forward to satisfying their further growth and business needs in the years ahead.

With our vacancy factor back to pre-1997 levels, the leasings reflect promisingly on our pre-marketing for One Island East which will be adding 1.5 million sq ft to the area in 2008."

Mr Spurr went on: "Demand for space in Island East has quickened and the single-phased arrival of One Island East is going to be opportune for the multi-nationals hoping to expand, or relocate to, an established business district."

Island East is Hong Kong's best managed commercial community with over 300 multi-national corporations already resident in the hub whose spokes comprise: TaiKoo Place and Cityplaza. This premium business environment enjoys a comprehensive telecommunications and transportation infrastructure, fully facilitated by an extensive overhead covered walkway system, private roads, two MTR stations and extensive landscaped plazas within the area. A host of dining, shopping and entertainment facilities creates a first-class environment for business and leisure, centred around Hong Kong Island's largest shopping centre, Cityplaza. All of Island East is developed and managed by Swire Properties.

About Swire Properties

Swire Properties, a wholly-owned subsidiary of Swire Pacific Limited, was incorporated in 1972 and is one of Hong Kong's leading developers with extensive experience in the development and management of major commercial, retail and residential properties.

Swire Properties' portfolio in Hong Kong principally comprises office and retail premises in prime locations, as well as serviced apartments, hotel interests and other luxury residential accommodation. The completed portfolio totals 13.11 million sq ft of gross floor area. Current property pending or under development in Hong Kong comprises a further 2.19 million sq ft, mainly of office space.

Visit Swire Properties web site at www.swireproperties.com

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