Apex Horizon compensation hopes dashed
Buyers in cancelled hotel development will not get increased payout, says Cheung Kong
Cheung Kong (Holdings) says it will not increase compensation for buyers of its cancelled hotel suites.
Buyers' hopes of seeking extra compensation were dashed when Cheung Kong said in a statement that there was no condition offering refunds of double the deposits in the preliminary and formal sale-and-purchase agreements for the Apex Horizon hotel in Kwai Chung.
Some Apex Horizon buyers intend to see if they can claim double what they put down as a deposit as compensation after the property giant terminated the sales.
On Monday, Cheung Kong said it would refund deposits and cancel the sales after a Securities and Futures Commission probe found the deals breached the law as unauthorised investments.
The sales drew scrutiny because the developer appeared to participate in a collective investment scheme - a project involving a group of small investors. To do this legally, Cheung Kong must seek approval for promotional documents and ensure they disclose all investment features and risks before any sales.
Cheung Kong said it would refund the deposit and any part payments, along with interest at 2 per cent per annum above the prime rate from the time of payment to the end of this month. It will offer buyers HK$10,000 in legal and other expenses.