Then the property of the mainland tycoon in Hong Kong was taken over, and the Cheung Kei Centre in Hung Hom owned by Chen Hongtian, chairman of Shenzhen Cheung Kei Group and member of the National Committee of the Chinese People's Political Consultative Conference, was suddenly taken over, and the notice posted in the lobby of the commercial building recently showed that Hang Seng Bank (00011) had appointed PricewaterhouseCoopers as the receiver, and Cheung Kei Centre Block A, B and parking lots became mortgage assets. In addition, market sources revealed that the unit on the 5th floor of OPUS, a luxury mansion in the eastern mid-levels of Hong Kong Island, owned by Chen Hongtian, and the house at No. 15 Hillside Road in the Peak of the Hilltop were also taken over. The market estimates that the market value of the three acquired properties is about $6.7 billion.
Cheung Kei Centre becomes a mortgage asset of Hang Seng
Cheung noted in Cheung Kei's notice at Cheung Kei Centre that under the mortgage agreement between its mortgagor Cheung Kei Centre Limited and Hang Seng in April 2019, Hang Seng has appointed Lo Bingham's partners, So Man Chun and Chuang Il Kit, as receivers of the mortgaged assets with effect from 28 March (Tuesday), comprising the Commercial Buildings A and B of Cheung Kei Centre, 18 Red Duck Road, Hung Hom, together with 155 parking spaces and 8 motorcycle parking spaces.
In response to this newspaper's inquiry, spokesman Luo Bingham said that it was not convenient to comment on relevant matters. Hang Seng has not responded by the deadline.
It is learnt that most of the three properties purchased by Chan Hongtian in the early years in Hong Kong were only undertaken by banks for one mortgage, and there was no crazy mortgage cash, but they have been taken over since February this year. The 5th floor unit of Auxuan was first taken over by the accountant building in early February; The house at 15 Gothsan Road was also taken over earlier this month. As for the entire Cheung Kei Centre, it was "nailed" by the creditors at the end of February.
Ao Xuan and Song Shan Road House "Nail Qi"
It is understood that after the completion of the takeover procedure, the above three properties will be commissioned by a surveyor to release them. According to an agent, only the market value of the three properties is expected to be higher than the purchase price, with a valuation of about $680 million, while the market value of the land at 15 Goshing Hill Road is expected to be slightly lower than its purchase price of $2.1 billion in 2016. Due to the sharp decline in commercial building rents in recent years, the market value of Cheung Kei Centre is only about $4 billion, which is more than 10% lower than the purchase price.
Only 10 months after the purchase of Aoxuan, that is, in June 2016, Chen Hongtian pointed out that the unit was not ideal for self-occupancy, so he rented it out, and then spent a sky-high price of 2.1 billion yuan to purchase the land at No. 15 Hilltop Song Hill Road from Dealer International (00367), planning to build a mansion with a total floor area of 9,235 square feet and a floor price of up to 227,400 yuan, breaking the record for property prices in Hong Kong.
Chan Hongtian bought the sky-high luxury residential land on Goth Hill Road for one month, and immediately spent $4.5 billion to purchase the entire commercial building in One HarbourGate, Hung Hom, a subsidiary of Wheelock, for the Group's headquarters and long-term investment in Hong Kong, and named the building Cheung Kei Centre. The transaction volume was the sixth highest transaction value of office buildings in Hong Kong at that time, and the third largest in Kowloon District. With a gross floor area of about 280,000 square feet, the average square foot price is about $16,071, which is nearly 8% higher than the adjacent One HarbourGate West Tower (China Life Centre) purchased by China Life Insurance (Overseas) in 2015.
The London Mall project was put up for sale by the bank
On the other hand, Bloomberg recently reported that Cheung Kei Group held the 20 Canada Square commercial building located at Canary Wharf in London, England, which was mortgaged by Lloyds Banking Group in the early years, and because Cheung Kei could not repay the £265.5 million loan on time, Lloyds appointed a broker to sell the property. Meanwhile, Cheung Kei holds another nearby office building, 5 Churchill Place, whose mortgage is due next month, and Lloyds is currently touting the £175 million loan in the market in an attempt to reduce risk.