Our policy is to deliver sustainable growth in dividends and Under the Hainan Free Trade Port policy, Sanya has rapidly to pay out approximately half of our underlying profit in become one of the most sought-after travel destinations in ordinary dividends over time. the Chinese Mainland. With the launch of our first premium resort-style complex, we will be well-placed to tap into this Close to 40% of HK$100 Billion growing demand. Plan Committed The Greater Bay Area remains a key focus, given its 2022 was a seminal year for the Company’s growth. strategic role in the economic development of the nation. Following the announcement of our HK$100 billion We are continuing to explore opportunities to develop a investment plan, our teams have made tremendous progress commercial landmark in the Julong Wan Area, set within a implementing our plan, with 39% now committed to new location on the riverfront in Liwan district, Guangzhou. and ongoing investments in Hong Kong and across our core We have been actively seeking investment opportunities in markets in the Chinese Mainland and South East Asia. Shenzhen, due to its increasing consumption power as a Under the plan, HK$30 billion has been allocated to our tier-one commercial and technology centre. We see portfolios in Hong Kong to further expand Taikoo Place and opportunities to introduce our Taikoo Hui and Taikoo Li Pacific Place. We are also keen to continue our growth in brands to the market, and were pleased to sign a Strategic the Chinese Mainland, and have earmarked HK$50 billion Framework Cooperation Agreement with the Futian district to double our gross floor area in the region over the next government in July 2022. We intend to develop a retail-led decade, under our recognised Taikoo Li and Taikoo Hui commercial project in Futian, which has highly attractive brands. prospects as the core business area of Shenzhen. Despite the challenges of the pandemic, we were able to We also made exciting headway in 2022 with the announce several significant new projects in the Chinese announcement of a new luxury hotel under The House Mainland in 2022, which testifies to our strong confidence Collective brand, which will be centrally located in the in the Chinese market over the long term. Nanshan district of Shenzhen. This new hotel venture followed closely on the heels of our announcement in July In March 2022, we announced our partnership with Xi’an of a new “House” hotel in Shibuya, Tokyo. Together, these Cheng Huan Cultural Investment and Development Co., Ltd hotel projects form part of our overall development plan for to develop Taikoo Li Xi’an. This mixed-use development is our hotel business, to ramp up the expansion of The House located at the Small Wild Goose Pagoda historical and Collective and EAST Hotel brands across Asia Pacific. We cultural zone in Beilin district, and will mark our seventh have the appetite to continue to invest, but prefer an development and our fourth Taikoo Li in the Chinese asset-light approach, utilising a management-contract Mainland. Hailed as a cradle of Chinese civilisation, we are model to expand into new cities. delighted to have the opportunity to develop a landmark In December 2022, we announced the acquisition of the project in this historical city. We are also excited to remaining 50% interest of Sino-Ocean Taikoo Li Chengdu contribute our placemaking expertise in the urban from our joint venture partner Sino-Ocean group. All three development of Xi’an. phases of the acquisition were completed by February In October 2022, we announced another retail 2023. This industry-leading development has become a top development project in Sanya. This will introduce more destination in the country and a source of local pride, and variety to our Chinese Mainland portfolio, as our first we see this acquisition as an important milestone in our project situated in a tropical locale within the region. regional growth story. 21 SWIRE PROPERTIES ANNUAL REPORT 2022