Ms Leong may walk away from Vicwood

PUBLISHED : Saturday, 30 July, 2005, 12:00am
UPDATED : Saturday, 30 July, 2005, 12:00am

Angela Leong On-kei, wife of Macau gambling tycoon Stanley Ho Hung-sun, may walk away from a deal to buy Vicwood Plaza from Morgan Stanley and Pamfleet (HK).

Property agents said the transaction, worth as much as $2.5 billion, may fail because of concerns over high interest rates and new supply in the commercial property market.

A Morgan Stanley spokesman yesterday said that the 38-storey commercial building, next to the Sheung Wan MTR station, had not officially been put up for sale. But local media reported in May that Ms Leong had agreed to pay as much as $2.5 billion for the property.

Ms Leong told the South China Morning Post yesterday that a transaction had never been finalised. 'I never said I would definitely purchase the property. It depends on a lot of conditions,' she said. 'Price, however, is not an issue.'

Raymond Lee, managing director of property consultant Savills, which is brokering the sale, said the transaction was 'on hold' and 'discussions are still going on'.

Morgan Stanley declined to comment on the sale yesterday.

The investment bank, along with property asset management company Pamfleet, bought Vicwood Plaza for $842.8 million during the 2003 Sars crisis.

The two investors later spent about $40 million to renovate the property.