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Swire Pacific Proposes Special Dividend on $2.4 Billion Festival Walk Sale

Swire Pacific Ltd. (19), the biggest commercial landlord in Hong Kong’s Island East district, said it will give a special interim dividend after selling its Festival Walk mall and office complex.

The company plans to pay HK$3 per ‘A’ share and 60 Hong Kong cents per ‘B’ share for the dividend, according to a statement to the Hong Kong stock exchange today.

Swire, which owns 17.8 million square feet of investment properties in Hong Kong, said last month it has agreed to sell the Festival Walk complex in Hong Kong’s Kowloon Tong area for HK$18.8 billion ($2.4 billion) to a unit of Singapore’s Temasek Holdings Pte in the company’s biggest property transactions.

The shares rose as much as 1.6 percent in Hong Kong today and were trading 1.3 percent up at HK$99.75 as of 2:01 p.m. local time. The stock has declined 22 percent this year, compared with the 12 percent drop in the benchmark Hang Seng Index. (HSI)

Swire built and operates complexes such as Tai Koo Shing residential district and the Pacific Place commercial complexes in the Admiralty district.

First-half underlying profit fell 48 percent to HK$4.6 billion after several one-time gains the previous year weren’t repeated, the company said Aug. 11.

To contact the reporters on this story: Kelvin Wong in Hong Kong at kwong40@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

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