Swire Pacific sees Hong Kong property sector recovery

HONG KONG (AFX-ASIA) - Swire Pacific Ltd chairman James Hughes-Hallet said he expects a recovery in the property market given the favourable interest rate environment. "With the favourable interest rate environment, we expect a recovery in the property market," he told a news conference. Hughes-Hallet, however, declined to respond to questions on whether the company will be able to write-back this year some of the provisions it has made for 2000. The company had made provisions of 1.7 bln hkd for the Ocean Shores project. Swire Properties managing director Keith Kerr said he expects rentals to continue in an upward trend this year. "Swire's office space is almost fully rented and the investment properties will be able to make a good profit contribution to the company," Kerr said. Hughes-Hallet said after undertaking a business rationalisation in the past few years, he expects there will be no drastic adjustments to the group's workforce. "In fact, with the strong aviation market, we are planning to hire more crew members," he said. Swire Pacific said it plans to develop its beverage business in China as there is a huge business opportunity in the mainland after China enters the World Trade Organisation.

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