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University Acquires Seized Hong Kong Tower Previously Owned by Tycoon Chen Hongtian

In a significant development within Hong Kong’s real estate market, the One HarbourGate East Tower in Hung Hom, seized from tycoon Chen Hongtian, has been sold to the Hong Kong Polytechnic University. The sale follows financial difficulties that led to the property’s foreclosure by its creditors.

The One HarbourGate East Tower, completed in 2016 by Wheelock Properties, boasts 279,000 square feet of commercial space, a waterfront retail area, and 155 parking spaces. Originally purchased by Chen’s Cheung Kei Group for HK$4.5 billion (US$575 million), the property became a symbol of the challenges faced by Hong Kong’s commercial real estate market as it struggled with high vacancy rates and financing pressures.

Chen’s Cheung Kei Group faced a liquidity crisis that led to the foreclosure of this tower alongside other assets, including a luxury house on The Peak and a flat in Opus Hong Kong. The properties, mortgaged for an estimated HK$6 billion, were seized by lenders as Chen defaulted on payments. The One HarbourGate East Tower was placed on the market by its receivers, PricewaterhouseCoopers (PwC), for a valuation of HK$7 billion.

The university acquired the property for an undisclosed amount, signifying a strategic investment in expanding its facilities. The acquisition comes at a time when distressed assets in Hong Kong are being sold at significant discounts, reflecting shifts in the city’s real estate landscape.

Analysts predict that more such transactions will emerge as owners grapple with tightening financial conditions and high commercial property vacancy rates.

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