Latest news with #TimBlackburn
South China Morning Post
15-04-2025
- Business
- South China Morning Post
Swire Properties bullish on mainland China despite tariff war's pall
Hong Kong developer Swire Properties is 'very positive' about opportunities in mainland China and expects to see improvements in rental income despite dampened consumer and business sentiment amid a tariff war between China and the US, according to its CEO. Advertisement 'Volatility and uncertainty are never good for business, and anything which undermines consumer confidence is not good for business,' Tim Blackburn said at a media event in Chengdu. 'But there is evidence that even under the current tariff scenario, there are positive opportunities and positive consequences for our businesses.' The company is on the hunt for retail investment opportunities in Shenzhen, the southern city bordering Hong Kong, amid the 'onshoring of consumption', he added. Declining interest rates, the onshoring trend – Hong Kong consumers visiting mainland China for shopping – and increased demand for high-end residential properties are all tailwinds, he said, adding that foot traffic across the company's shopping centres in mainland China increased by about 5 per cent in the past year. The Hong Kong developer has been ramping up its capital commitment to the mainland in recent years. In March 2022, it announced a HK$100 billion (US$12.9 billion) investment plan for commercial and residential projects across Hong Kong, mainland China and Southeast Asia over the next decade, with half of that earmarked for the mainland. Advertisement As of March 7, HK$46 billion, or 92 per cent of the mainland allocation had been already deployed, according to Swire Properties' annual report. While the current priority is to complete existing projects, Swire Properties is also looking for new opportunities in Shenzhen, Blackburn said.
South China Morning Post
13-03-2025
- Business
- South China Morning Post
Hong Kong's Swire Pacific profit slides on property slump, Cathay stabilises
Swire Pacific, which controls Hong Kong's flagship airline Cathay Pacific, reported an 85 per cent slump in earnings last year amid losses in the property business and the sale of its Coca-Cola franchise in the US. Advertisement Profit fell to HK$4.32 billion (US$556 million) from HK$28.9 billion in 2023, the group said in a stock exchange filing on Thursday, after booking deficits in the value of its development and investment properties. Excluding the deficits and other one-off charges, the group's recurring underlying profit weakened 11 per cent to HK$9.28 billion, it added. Cathay Pacific maintained its earnings last year as global travel rebounded further post-pandemic, it said. Swire Pacific also said it booked capital gains from the sale of its Coca-Cola franchise in the US last year to focus on its new ventures in the beverage markets in Thailand and Laos. 03:39 Shop occupancy recovers in Hong Kong, but vacant stores still visible across the city Shop occupancy recovers in Hong Kong, but vacant stores still visible across the city 'The office market in Hong Kong is expected to remain subdued in 2025 as a result of the uncertainty of the economic environment' despite signs of revival in the city's financial market, chairman Tim Blackburn said. Corporate cost-cutting measures hurt demand for office space, he added. Swire owns 82 per cent of Swire Properties , one of the largest commercial landlords and retail operators in Hong Kong, whose assets include Pacific Place in Admiralty and Taikoo Place in Quarry Bay. It posted a HK$766 million loss versus a HK$2.64 billion profit in 2023, due to weaker sales and an erosion in the fair value of its assets. Gross rental income from its Hong Kong office portfolio declined 7 per cent year-on-year to HK$5.1 billion, while income from its shopping malls and retail venues fell 3 per cent year on year to HK$2.4 billion due to weak demand, high vacancy rates and new supplies, the developer said. The near-term results were likely to remain subdued, it added. 01:29 Hong Kong government to bail out Cathay Pacific with HK$30 billion in loans and direct stake Hong Kong government to bail out Cathay Pacific with HK$30 billion in loans and direct stake Meanwhile, Swire Properties said its mainland China business improved, especially in the retail segment where gross rental income grew by 7 per cent year on year as footfall and retail sales benefited from Beijing's stimulus measures in late September. Retail sales growth could pick up this year, it added.
