Tycoon Chen Hongtian blames ‘short-term cash-flow disruption’ for seizure of Hong Kong properties including Peak house

His company, Cheung Kei Group, cites defaults on ‘several big-ticket accounts receivable’ and ‘abnormal obstacles’ for loss of control over assets

Chen Hongtian’s three core properties in Hong Kong are worth about HK$9.8 billion (US$1.25 billion), company says

Chinese tycoon Chen Hongtian’s company has blamed a “short-term cash-flow disruption” after three of his properties in Hong Kong, including a house on The Peak that he bought for HK$2.1 billion (US$268 million) in 2016, were taken over by creditors.

“I hope that the public will further understand the correct information,” Chen told the Post on Friday, breaking his silence over the seizure of three of his assets in the city.

“Chen Hongtian’s three core properties in Hong Kong are worth about HK$9.8 billion, according to recent appraisal reports commissioned by banks,” Cheung Kei Group said in a statement on Friday, published in the official WeChat account of Shenzhen-based Harmony Club, which is chaired by Chen.

“Although the value of some properties has dropped sharply compared to before the pandemic, it should be slightly higher than the HK$5 billion in loans, and the debt ratio is less than 60 per cent.”

The statement came after Chen’s house, a 9,212 sq ft property at 15 Gough Hill Road, was seized this month by receivers appointed by Bank of East Asia (BEA), according to government records.

In February this year, Bank of Communications appointed receivers for his Opus Hong Kong property, which he bought with Chen Yao Li Ni.

Chen lost control of other assets in the city, including commercial buildings Towers A and B of Cheung Kei Center in Hung Hom. They were mortgaged with Hang Seng Bank in May 2019. The bank appointed receivers to take over the buildings this month.

“In the past two months, several big-ticket accounts receivable were defaulted off-the-cuff by the other party,” the statement said. “At the same time, the buyer of a big transaction suddenly defaulted a few days before the completion of the transaction, resulting in a related breach of contract.”

In addition, many “normal business processes” in mainland China have encountered “abnormal obstacles”, the company added. “A series of events caused a short-term cash flow disruption. These problems are likely to be properly resolved in a short period of time.”

The company went on to plead for “understanding and support” from “relevant financial institutions and media” to “support enterprises to tide over difficulty” when “the government hopes to revive economic development”.

Harmony Club is a group of about 150 tycoons, mostly based in Shenzhen, who directly or indirectly control more than 70 listed companies and around 3,000 corporate entities.

The club’s executives include Pony Ma Huateng of technology company Tencent, Wang Chuanfu of electric vehicle company BYD and Wang Wei of SF Express, a delivery services and logistics company.

Meanwhile, agents for a mansion on The Peak linked to Hui Ka-yan, Evergrande’s founder and chairman, failed to find an acceptable bid during the planned timeline of the second half of March.

“The [bids] received for the Black’s Link project have not met the requirements, and we will continue to contact potential buyers for the sale of the mansion,” an agency said, one of the two agencies involved.

Mansion 10B at Black’s Link could be valued at over HK$800 million, given that comparable properties on The Peak are valued at HK$140,000 to HK$150,000 per square foot, a source familiar with the sale process said in early March.

(South China Morning Post)

For more information of Office for Lease at Cheung Kei Center please visit: Office for Lease at Cheung Kei Center

For more information of Grade A Office for Lease in Hung Hom please visit: Grade A Office for Lease in Hung Hom

Hong Kong property: Wheelock sells 75 per cent of flats in first batch of Koko Mare project in Lam Tin

Homebuyers snapped up 103 of 138 flats at Wheelock Properties’ Koko Mare in Lam Tin within three hours on Saturday

Property demand has surged in Hong Kong amid hopes that the city has reached the peak of interest rate increases

Wheelock Properties sold 103, or 75 per cent, of the 138 flats on offer in its latest Lam Tin Project within three hours after sales began on Saturday, as the reopening of Hong Kong’s border with mainland China and other positive developments boost homebuyers’ sentiments.

The units at Koko Mare, phase 3B of the Koko Hills development, consist of one to two-bedroom units ranged between 300 to 400 sq ft. After discounts, they were priced between HK$5,937,000 (US$756,000) to HK$9,931,000, with an average price of HK$17,000 to HK$23,039 per sq ft.

“The sales were strong,” an agent said. “The project received positive responses from homebuyers, especially young people aged below 40, who accounted for 70 per cent of all buyers.”

The enthusiastic response to Koko Hills matches last month’s robust sales of the 160 flats offered in the second batch of its sibling project, Koko Rosso. Buyers snapped up nearly all units within a day.

Other recent launches, including Star Properties’ After The Rain project in Yuen Long, Henderson Land’s One Innovale in Fanling, and Sun Hung Kai Properties’ Novo Land in Tuen Mun, also attracted strong interests.

“The new launches have received good market responses, and home prices in the first quarter have risen 5 to 6 per cent from the fourth quarter last year,” said Ricky Wong, managing director at Wheelock. “I expect that rising trend to extend into this month.”

Most of the units sold today were priced at HK$6 million to HK$9 million, allowing first-home buyers to benefit from the government’s recent move to cut ad valorem stamp duty, Wong added.

Property demand has surged amid expectations that Hong Kong has reached the peak of interest rate increases.

The Hong Kong Monetary Authority last week lifted the city’s base rate to a 15-year high of 5.25 per cent, following the US Federal Reserve increased its target rate by a quarter point to a range of 4.75 per cent to 5 per cent.

But Hong Kong’s major lenders, including HSBC and Bank of China (Hong Kong), kept their best lending rates unchanged at 5.625 per cent, while Standard Chartered kept its prime rates unchanged at 5.875 per cent.

The city may see a 50 per cent jump in home transactions this year, which will be especially encouraging to younger buyers, according to analysts.

“The interest rate is likely to have hit the peak level, which may attract first-time homebuyers and investors to buy properties,” an agent said.

In March, Hong Kong recorded 8,202 home transactions, the highest level in 20 months and up 37.2 per cent compared with February, according to data compiled by a property agency. It was also the third consecutive month that the city saw an increase in home transactions.

“As more projects will be launched in April, we expect Hong Kong to see more than 2,500 new homes sold this month,” the agent said.

An online survey conducted between March 1 to March 7 by 28Hse.com, a Hong Kong-based property information provider, showed that above half of the 3,528 interviewees expected Hong Kong’s home prices to rise in the coming 12 months, while 20 per cent of respondents estimated that prices would drop 10 per cent.

About 37 per cent of the respondents said they were currently very interested in buying a new home, while 22 per cent said they had no such plans.

(South China Morning Post)

寫字樓空置率14.4%創24年來新高

去年受第5波疫情打擊，加上近年寫字樓供應量大增，令到空置量急升。根據差估署最新公布的《香港物業報告2023》初步統計數字，去年本港整體寫字樓空置率14.4%，較2021年的12.3%增加2.1個百分點，空置率屬1998年錄得15.9%之後24年來新高。

期間，甲廈空置率亦由2021年的12.5%，大增2.6個百分點至15.1%，亦是1998年後15.3%後的24年新高。期內整體寫字樓總落成量，大增至377.8萬方呎，創1995年後的27年新高，其中甲級寫字樓錄321.8萬方呎，為2008年後14年新高，估計落成量大幅增加，導致空置率急升。

甲廈使用量由負轉正

有代理表示，商廈由土地規劃、賣地至落成，歷時長達10年，2012年經濟暢旺，政府規劃更多商廈地皮，及至大約5年後、2017推出賣地，當年，新世界一舉連奪長沙灣3幅商貿地，近年陸續落成。

雖然商廈空置率增加，不過，去年整體使用量錄增長，由2021年的負43萬方呎，升至淨吸納量20.5萬方呎，甲廈使用量亦同時由負轉正。

差估署數字預期，今年寫字樓整體落成量將下降至約287萬方呎，當中甲級佔270萬方呎，2024年寫字樓整體落成量將進一步降至114萬方呎，甲級佔約93.6萬方呎。

(星島日報)

鄧成波家族放售市值逾60億物業

自從「鋪王」鄧成波2021年5月離世後，其家族陸續大手放售旗下物業，昨日再有一張最新放售物業清單曝光，合共25項物業，分布港九新界，包括有鋪位、商住樓、寫字樓及車場等，市值合共逾60億，其中最貴重的一項高達11.2億。

最貴重一項高達11.2億

該批物業分布觀塘、旺角、尖沙嘴及灣仔，最大宗為觀塘興業街1號駱駝漆中心全幢，市值11.2億 ，目前月租130萬，項目於去年推出時叫價約14億，最新減價20%，項目總樓面逾10萬方呎，位於興業街交界，距離港鐵觀塘站2分鐘步程。

鄧成波於2014年以10.8億買入駱駝漆中心，及後進行翻新工程，更曾於2017年商廈高峰期以28.8億放售。

位於尖沙嘴加拿分道37至39號物業，以6.8億放售，目前月收59.6萬；日前，該家族透過外資代理行放售深水埗欽洲街明輝大廈商住樓，亦在物業清單內，意向價1.8億。

加拿分道物業意向價6.8億

近期，該家族最矚目的買賣為沽售旺角商業中心地下至4樓，作價3.5億，物業於2017年以3.8億購入，帳面虧損約3000萬。

(星島日報)

旺角「巨無霸」商業地 中標價高次標34%

新地上月初以47.29億力壓2財團、投得旺角洗衣街「巨無霸」商業地，地政總署昨以不具名方式，公布其餘2份落選標價，出價介乎6.88億至35.21億，樓面呎價約451至2310元；而中標價較次標高出約34.3%，可見新地出價進取，以「志在必得價」競投。

上述用地以每方呎樓面地價約3103元批出，當時地價屬低於市場估值下限價約16%。首兩標出價已見明顯差距，次標出價約35.21億，與中標價相差約12.08億或約34.3%，每方呎樓面地價約2310元。

最低每呎出價451元相差5.9倍

同時有財團以「執雞價」競投，最低標出價僅約6.88億，與中標價相差40.41億，中標價遠遠拋離其約5.9倍，每方呎樓面地價僅約451元。

上述商業地位處於旺角洗衣街及亞皆老街交界，鄰近旺角及旺角東站。地盤面積約12.4萬方呎，涉及可建總樓面約152.4萬方呎，是近年九龍區罕有商業地新供應。除中標的新地外，其餘入標財團，包括長實，以及鷹君則夥拍信和合組財團。

涉總樓面152萬方呎

據賣地章程，中標財團須負責興建指定政府社會服務設施、長者中心，青少年及幼兒中心，亦要興建行人天橋通道接駁附近建築物及公眾停車場等，而政府物業並不計算總樓面內。

(星島日報)