Billionaire Li Ka-shing’s CK Asset sells luxury Mid-Levels project to Singapore fund for US$2.6 billion in surprise deal amid market wobble
Hong Kong’s wealthiest tycoon Li Ka-shing is offering one of Asia’s most costly housing projects in the metro to a Singapore-based assets manager, surprising the market with among the greatest offers amid a slump in the economy.
Hong Kong’s realty market has been hit hard recently by the coronavirus widespread in early 2020 and even social unrest all over 2019. The ultra luxury market, which is generally sustained by mainland Chinese buyers, has been in the doldrums under more than two years of boundary closure and vacation constraints.
The prospective buyer, LC Vision Capital 1, is an overseas fund founded by Sino Suisse Capital, a closely had finances manager run by Albert Liu, former head of high net-worth client administration for China at UBS Asset Administration.
The transaction with Sino Suisse covers up 148 unsold units, each with a single accompanying car-parking space, including an added 86 auto and 31 motorcycle garage, according to the filing. The units were actually valued at HK$ 62,000 per square foot, whereas the extra vehicle as well as electric motor garage were secured at HK$ 5 million and HK$ 300,000 each, specifically.
The 21 Borrett Road high-end property consists of 152 residential units, 242 vehicle garage plus 31 motorcycle parking spaces. CK Asset had previously obtained to offer 4 household units along with 8 car-parking spaces to third-party buyers.
Li’s flagship real estate business CK Asset Holdings accepted market its task known as 21 Borrett Road in Mid-Levels for HK$ 20.8 billion (US$ 2.6 billion or $30 billion) to sack a HK$ 6.3 billion earnings, according to a stock exchange declaring late on Wednesday. The purchase is expected to be completed by March 2025, it included.
” It is a very good offer for CK Asset,” said Joseph Tsang, chairman of JLL in Hong Kong. “Although externally the average cost is lesser what it offered previously at the project, it is not a very easy task to find one sole customer to consume all the standing units at one purchase in this market, which goes to the start of a downside cycle.”
” Even if the boundaries reopen, we are uncertain whether the mainlanders’ money can recede into Hong Kong’s high-end housing market,” said Tsang. “So at this moment, it is most definitely a best choice to seal an offer, when you can find a client to pay a reasonable cost.”