Seized Hong Kong Flat Sold at 39% Discount Following Loan Default

A Hong Kong flat in the Mid-Levels district, originally valued at HK$680 million (US$86.7 million), has been sold at a 39% discount after being seized from Chinese tycoon Chen Hongtian due to unpaid loans. The 5,154 square foot flat, situated in Opus Hong Kong, was acquired by Kwai Sze Hoi for HK$418 million, according to official records. Kwai is the chairman of Ocean Line Port Development, a Hong Kong-listed company specializing in inland terminal operations in mainland China and port logistics services.

Chen Hongtian and his wife, Chen Yao Li Ni, purchased the flat on the fifth floor of 53 Stubbs Road for HK$387 million in September 2015. In February, the property was seized by the Bank of Communications, which had extended a mortgage in August 2019.

This transaction reflects a wider trend in Hong Kong, where lenders have been seizing assets from Chen, who owns various offices, hotels, and finance firms through his Cheung Kei Group. The Opus Hong Kong property was sold through a tender process that closed in August.

The Opus Hong Kong, developed by Swire Properties, is known for being architect Frank Gehry's sole residential project in Asia. The building is unique, with each of its 12 flats featuring a distinct floor plan. The flat owned by Chen, occupying the entire fifth floor, boasts five bedrooms, including four with private bathrooms, a study, a living room, a dining room, and a kitchen. It offers an open-plan design and a ceiling height of over four meters.

Despite its architectural appeal, the sale price represents a substantial discount compared to the property's market value, illustrating the challenges faced by some property owners in Hong Kong's real estate market.

By fLEXI tEAM