Swire Properties Acquires Landmark Development - Beijing Sanlitun Project

Swire Properties Limited ("Swire Properties") today (Thursday, 22nd February 2007) confirms the acquisition of the Beijing Sanlitun project in partnership with Gateway China Fund I ("Gateway").

Swire Properties will take an 80 percent stake in the two retail portions with Gateway taking the remaining 20 percent. Swire Properties has also acquired 100 percent of the boutique hotel which forms part of the overall project.

Swire Properties is a wholly-owned subsidiary of the publicly-listed Swire Pacific Limited while Gateway is a private equity real estate fund established in 2005 with a long-term investment focus in China.

"We are delighted with the acquisition of this exciting investment in Beijing," said Swire Properties' Chairman Keith Kerr. "This innovative project in Sanlitun is our first investment in Beijing and, together with existing commitments in Shanghai and Guangzhou, enables us to expand our management philosophy of 'Building Excitement' to the three principal cities within the Mainland."

The partnership between Swire Properties and Gateway is also the first time the two companies have joined forces. "As a long-term investor, we are very prudent in choosing joint-venture partner," said Goodwin Gaw, Chairman of Gateway. "We believe Swire not only brings strong financial backing, but also world-class management expertise. By having Swire Properties as our partner in this project, we are confident that this will ensure our investment is well managed with long-term value creation in mind."

The Sanlitun project, which has a total investment of Rmb 4.8 billion, comprises two sites with a total site area of over 580,000 sq ft (54,000 sq m) and a total floor area of over 1,850,000 sq ft (172,000 sq m). The development, which will be completed later this year, is a low-rise mixed commercial scheme that will offer over 400 retail shops in 17 buildings, together with a boutique hotel of 100 keys.

About Swire Properties Limited

Incorporated in 1972, Swire Properties develops and manages commercial, retail and residential properties which offer exceptional and inviting environments in prime location to its tenants and patrons. The completed portfolio in Hong Kong totals 13.13 million sq ft (approximately 1.20 million sq m) of gross floor area, with Island East, Pacific Place and Festival Walk as its core holdings, reflecting its strength in building communities.

Swire Properties first entered the China market in 2002 and has representative offices in Guangzhou, Shanghai and Beijing. The Company currently has on-going projects in Guangzhou and Shanghai, namely the Taikoo Hui project in Guangzhou Tianhe District and the Dazhongli project in Shanghai Jing'an District. Swire Properties is committed to the China market and actively seeks new projects to expand its current portfolio.

The Company is a wholly-owned subsidiary of the publicly-listed Swire Pacific Limited whose businesses are grouped under five operating divisions - property, aviation, beverages, marine services and trading & industrial.

Visit Swire Properties web site at www.swireproperties.com for further information.

About Gateway China Fund I

Gateway China Fund I is a US$ 198 million private equity real estate fund with a long-term investment focus in China. The fund is managed by Gateway Capital, which is a real estate investment management company founded by Goodwin and Kenneth Gaw. Since its establishment in 2005, Gateway China Fund I has successfully invested in 10 real estate projects in Beijing, Shanghai, Guangzhou, and Hong Kong worth a total of US$1.4 billion. (Website: www.gatewaycapitalgp.com)