Li Ka-CK shing’s assets Luxury Mid-Level projects sold to a Singapore fund for US$2.6 billion by surprise
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The richest Hong Kong tycoon Li Ka-shing has sold one of the most expensive residential developments in the city to a wealth management firm in Singapore who has astonished the market by negotiating one of the most lucrative deals despite a slowdown in the global economy.
Li’s main property business CK Asset Holdings agreed to sell its property known as 21 Borrett Road at Mid-Levels for HK$20.8 billion (US$2.6 billion or $30 billion) to make the HK$6.3 billion profit, as per an exchange filing on Wednesday. The deal is expected be completed by the end of March 2025, according to the filing.
The purchaser, LC Vision Capital 1 is an offshore investment fund established by Sino Suisse Capital, a tightly-held money manager that is run by Albert Liu, former head of high net-worth client management in China in UBS Asset Management.
The 21 Borrett Road luxury project comprises 292 residential units, 152 parking spaces for cars and the possibility of 31 parking spots for motorcycles. CK Asset had earlier contracted to sell four residential units as well as eight car parking spaces to third party buyers.
The deal in conjunction with Sino Suisse covers 148 unsold units, each of which has an car parking space and an additional 31 motorcycle and 86 car parking spaces, as per the documents. The units were valued at HK$62,000 for a square foot and the additional cars and motorcycle parking spots were priced at HK$5 million or HK$300,000 per space, respectively.
“It is a fantastic price on CK Asset,” said Joseph Tsang, chairman of JLL in Hong Kong. “Although at first glance, the price is less than the price it received prior to the development but it’s difficult to find a buyer to buy all remaining units in one time in this market, which is in the start of a down cycle.”
The real estate market in Hong Kong has been shattered recently by the coronavirus epidemic in the early 2020s and by the rumblings of social tensions through 2019. The ultra-luxury market that is mostly backed with mainland Chinese buyers is in slump for more than 2 years of border closures as well as travel bans.
“Even even if the borders were to reopen but we’re not certain whether the cash from mainlanders will return to the luxury housing market in Hong Kong,” said Tsang. “So now it’s a good idea to sign the deal if you are able to locate a buyer who will offer a fair price.”