A foreclosed luxury Hong Kong home linked to the chief executive officer of embattled property developer Kaisa Group Holdings Ltd was sold for HK$300 million (US$38.2 million) through tender, according to a person familiar with the matter.
The 3,953 square foot house with a private garden in the Residence Bel-Air development had changed hands for HK$350 million in 2017. It was purchased that year by Million Link Development Ltd, a company where Kaisa’s vice-chairman and CEO Mai Fan was a director until January, according to a company registry filing.
Distressed mainland developer Kaisa has been selling assets in Hong Kong to cope with a debt crisis sweeping across China’s real estate industry. Peers including China Evergrande Group have also been offloading private properties to raise cash.
Such sales may add to headwinds for Hong Kong’s housing market. The city’s home prices are under pressure from rising interest rates, a potential tax hike on luxury properties, and Covid restrictions that limit visits from potential mainland buyers.
The mansion was sold at a 14% discount to the 2017 purchase price, according to a document by Centaline Property Agency, having been put on the market by receivers. Cosimo Borrelli and Tai Shaw Hoong of New York-based insolvency firm Kroll applied for receivership in March, company registry filings showed.
https://www.theedgemarkets.com/article/hong-kong-luxury-home-linked-kaisa-ceo-sold-14-discount