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Pearl Oriental faces $100m BEA claim after Genesis sale

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The Bank of East Asia (BEA) will require troubled Pearl Oriental Holdings to repay almost HK$100 million following the sale of the luxury mansion, The Genesis, on The Peak, according to a spokeswoman.

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The luxury house in Severn Road was taken over by the bank when Pearl Oriental failed to repay a mortgage in July.

This week the bank agreed to sell The Genesis to mainland property tycoon Hui Wing-mau's Dong Jian Tech.com Holdings, to be renamed Shimao China Holdings, for HK$230 million.

The price will not cover Pearl Oriental's debt to the bank of HK$328 million at November 30.

The spokeswoman said theoretically the bank had absolute liberty to sell repossessed property at the best offer without informing Pearl Oriental, and HK$230 million was the best offer.

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Trading of Pearl Oriental shares was suspended yesterday pending an announcement about a possible sale of chairman Wong Kwan's stake in the company and a possible connected transaction.

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