Bloomberg News

Swire Pacific Said to Hire Banks for Property Unit Listing

October 10, 2011

Oct. 10 (Bloomberg) -- Swire Pacific Ltd. hired BOC International Holdings Ltd., Goldman Sachs Group Inc., HSBC Holdings Plc, and Morgan Stanley to help list its property unit in December, two people with knowledge of the matter said.

The commercial landlord and owner of Hong Kong’s biggest airline said in a Sept. 22 statement that it may seek to list Swire Properties Ltd. without raising funds. The Hong Kong listing may allow Swire Properties to raise money later, said one of the people, who declined to be identified because the information is private.

Swire Pacific scrapped a planned initial public offering of the property unit last year because of “deteriorating market conditions,” the Sept. 22 statement said. The company had sought to raise as much as HK$20.8 billion ($2.7 billion), people familiar with the matter said at the time.

Swire Properties has no “medium-term” need to raise funds after the July sale of its Festival Walk mall in Hong Kong, Chief Executive Officer Martin Cubbon said in an interview with Bloomberg TV on Sept. 23. The sale gave the unit enough capital to meet expenses for current projects in China, he said.

Swire sold Festival Walk to a unit of Singapore’s Temasek Holdings Pte for HK$18.8 billion.

Cindy Cheung, a Swire Pacific spokeswoman in Hong Kong, said she couldn’t comment on details of the listing plan beyond the Sept. 22 statement.

--With Assistance from Bonnie Cao in Hong Kong. Editors: Philip Lagerkranser, Mohammed Hadi

To contact the reporters on this story: Fox Hu in Hong Kong at fhu7@bloomberg.net;

To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net


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