Swire Pacific Limited
Further to the Company's announcement dated 14 January 2000, the arbitrator has recently published his initial findings in the arbitration between (i) the Hong Kong SAR Government Lands Department and (ii) Swire Properties Limited (a wholly owned subsidiary of the Company) and its subsidiaries (collectively "SPL") together with the Company concerning the claim by Government for land premium and interest in relation to the Cityplaza Four, Cityplaza Three and Cityplaza One office towers and the Horizon Gardens residential apartments.
The arbitrator held that SPL was liable to pay premium and interest.
At the time of the previous announcement, Government's estimate of the amount of its total claim, including interest, was approximately HK$4,500 million.
The arbitrator has determined that the premium for Horizon Gardens is HK$151 million (plus interest yet to be determined) and this will be charged to the consolidated profit and loss account of the Company for the year 2000.
The amount payable in respect of the office towers will be agreed between the parties and, failing agreement, will be assessed by independent experts. Such payment will be offset against the Company's consolidated property valuation reserve and not against the consolidated profit and loss account.
Payment of the claim, once finalised, will be funded from the Company's operating cash flows and credit facilities.
The Company will make a further announcement when the amount payable in respect of the office towers is finalised.
By order of the Board
P A Moore
Hong Kong, 16 January 2001
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