Seized US$892 million Hong Kong commercial property put on sale as tycoon Chen Hongtian fights to reclaim it
- One HarbourGate East Tower in Hung Hom has been put on the market for tender sale by its receivers, according to real estate firm Savills
- The announcement came after Chen Hongtian said on Friday he was in talks with lenders to retrieve a trio of assets including the property
Creditors have appointed agents to sell a HK$7 billion (US$892 million) Hong Kong commercial property that is among a trio of seized assets tycoon Chen Hongtian is fighting to regain control of.
One HarbourGate East Tower in Hung Hom has been put on the market for tender sale by its receivers, according to a statement released on Sunday by international real estate firm Savills, which said it has been appointed as the sole agent for the tender.
“I will ask lawyers to study it,” Chen, the chairman of Cheung Kei Group, told the Post on Sunday when he was shown the Savills statement.
Chen said on Friday that he has plans to inject fresh funds to resolve the “mild default” issue related to three properties, including the One HarbourGate tower and a HK$2.1 billion house on The Peak.
One HarbourGate East Tower has about 279,000 sq ft of commercial space. Completed in 2016 by Wheelock Properties, it comprises an office tower and a two-storey retail space along the waterfront, with 155 car-parking spaces.
The market valuation was around HK$7 billion last year, the Savills statement said, citing the original owner’s provision. The tender will be floated globally and is expected to close on August 28, the statement added.
The One HarbourGate building, bought for HK$4.5 billion in 2016, was taken over by Christopher So Man-chun and Victor Jong Yat-kit of PwC Hong Kong on behalf of Hang Seng Bank.
The property serves as the headquarters of Sun Life Insurance, while the neighbouring West Tower houses the headquarters of China Life, said Raymond Wan, chief senior director of investment at Savills.
The property has an occupancy rate of 84 per cent, said Godfrey Cheng, deputy senior director of the investment CEO office at Savills.
HK$2.1 billion Peak home purchase partly funded by Shenzhen property transfer in deal that has Hong Kong real estate buzzing
Savills declined to comment on Chen’s reaction to its statement. The Post has reached out to the receivers for comment.
The three properties – a 9,212 sq ft house at 15 Gough Hill Road on The Peak, a flat in Opus Hong Kong in eastern Mid-Levels and One HarbourGate East Tower – were mortgaged with banks for around HK$6 billion, but were valued at around HK$10 billion, according to Chen.
Luxury villa at The Peak up for tender, could fetch as much as US$122.5 million
The previous month the Opus Hong Kong flat was seized by Bank of Communications, which had extended a mortgage in August 2019.
“Investors in general are still seeking bottom-fishing opportunities, with assets presented at discounts across different real estate sectors, and with some acquisitions being large-sized receivership deals,” said Rosanna Tang, executive director and head of research at Cushman & Wakefield.
“In recent months, the market has already witnessed some receivership deals, and some property owners are now more willing to sell noncore assets,” she said, adding that she expects more such large-scale transactions later this year.
