Li Ka-shing’s CK Asset confiscates deposit as sale of US$2.66 billion Mid-Levels project to Singapore fund falls through
- LC Vision Capital 1 failed to make a US$133 million payment, plus accrued interest, on the purchase of 148 units at 21 Borrett Road
- CK Asset cited high interest rates as a factor in the collapse of the deal in an exchange filing on Thursday
CK Asset Holdings confiscated the HK$2.08 billion deposit paid by the buyer, LC Vision Capital 1, after the fund manager “failed to pay the first part payment in the amount of HK$1.04 billion”, plus “accrued interest”, for its purchase of 148 flats at 21 Borrett Road in the city’s Mid-Levels area, according to a stock exchange filing by CK Asset on Thursday evening.
The sale and purchase agreement was terminated with immediate effect, and notice was given to the buyer on Thursday. The termination will not have a material adverse impact on CK Asset’s business or financial position, it said in the filing.
“The two parties have tried to look into different solutions to solve the problems in a way not to harm their rights and interests,” said CK Asset executive director Justin Chiu Kwok-hung, who cited changes in the property market and rising interest rates as issues leading to the collapse of the deal. “They failed to reach an agreement in the end.”
Chiu said it was “a pity” to take the action, but the group had to follow the contract terms and keep the deposit.
LC Vision Capital 1 is an offshore fund founded by Sino Suisse Capital, a closely held money manager run by Albert Liu, former head of high-net-worth client management for China at UBS Asset Management.
