Kaisa vice-chairman’s Bel-Air villa is for sale in Hong Kong at discount as developer disposes of assets to raise capital amid crippling debt
- House 17 of Bel-Air Rise in Pok Fu Lam on Hong Kong Island was put up for sale this week by a group of receivers
- Its market value stands between HK$260 million and HK$280 million, lower than the HK$350 million reportedly paid for it in 2017, according to local media reports
The Hong Kong villa of a Kaisa Group Holding executive has been offered for sale at a discount by receivers, joining a growing group of mainland Chinese developers who are selling their assets at distressed prices amid the debt crunch and stagnation in China’s property market.
House 17 of Bel-Air Rise in Pok Fu Lam, the third phase of the Residence Bel-Air luxury property project on the southwestern corner of Hong Kong Island, was put up for sale this week by a group of receivers, according to CBRE. The receivers include Cosimo Borrelli and Tai Shaw Hoong of New York-headquartered Kroll.
The two-storey villa, spread over 3,953 square feet (367 square metres) is valued at between HK$260 million and HK$280 million, or a discount of up to 26 per cent compared with its HK$350 million (US$44.6 million) purchase price in 2017.
Kaisa’s vice-chairman and chief executive Mai Fan held the villa through Million Link Development Limited, which previously listed the executive as a director. Million Link was taken over by the receivers appointed in December.
Shenzhen-based Kaisa is struggling to raise cash as it faces US$11.4 billion of outstanding bonds and US$200 million of perpetual notes coming due in 2026, according to Bloomberg’s data. A property slump in China is damping the developer’s ability to sell homes, forcing Kaisa to dispose of assets to raise capital.