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Victor Li’s CK Asset submits bid for China Evergrande’s flagship Hong Kong building in lifeline for distressed developer
- The grade A building, built in 1985, has a total floor area of 345,424 square feet (32,000 square metres)
- At the time of the deal, the building had a 100 per cent occupancy rate, but today this has dropped to mid-70 per cent, according to property consultants Colliers
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One of Hong Kong’s wealthiest businessmen has submitted a bid to buy China Evergrande Group’s trophy head office building in the city, throwing a financial lifeline to the world’s most indebted developer just days before a deadline to reorganise US$300 billion of liabilities.
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CK Asset Holdings, controlled by Hong Kong’s wealthiest man Li Ka-shing and chaired by his elder son Victor Li, has confirmed that it “has submitted a tender for China Evergrande Centre,” an office tower located at 38 Gloucester Road in Wan Chai, according to a company statement.
The 26-storey tower, bought by Evergrande for HK$12.5 billion (US$1.61 billion) in 2015, is one of the key assets marked for disposal by the Shenzhen-based developer. The private sale by tender closes on Thursday, industry sources said.
Henderson Land Development and Far East Consortium told the Post they did not bid for the asset, while Sun Hung Kai Properties and Hang Lung Properties declined to comment.
Evergrande, founded by chairman Hui Ka-yan, bought the building then known as MassMutual Tower from Chinese Estates Holdings, a Hong Kong developer controlled by the family of tycoon Joseph Lau Luen-hung, one of his billionaire friends. Evergrande had agreed to pay in eight instalments over six years in that deal.
The Grade A building, built in 1985, has a total floor area of 345,424 square feet (32,000 square metres). At the time of the 2015 transaction, the building had a 100 per cent occupancy rate, but today this has dropped to mid-70 per cent, according to property consultants Colliers.
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