Hong Kong landlord linked to Chinese Estates sues I.T Group companies for US$3.2 million over unpaid rent
- The owners of shops in the Silvercord shopping centre on Monday sued companies related to I.T Group for unpaid rent and other fees
- Legal action to recover unpaid rent has spiked since a moratorium on such activities ended on July 31, a property executive says
Hong Kong commercial landlords have stepped up legal action against tenants for unpaid rent after a moratorium against such action expired at the end of July, with one owner going after shop operators in a Tsim Sha Tsui shopping centre for HK$24.85 million (US$3.2 million).
Silvercord Limited on Monday sued companies related to local fashion company I.T Group for unpaid rent and other fees relating to four shops in the Silvercord shopping centre, according to official documents and writs.
Silvercord Limited’s directors are Chan Hoi Wan, who is the wife of tycoon Joseph Lau and the CEO of Chinese Estates Holdings, and Chan Sze Wan, who is Chan Hoi Wan’s sister and the former CEO of Chinese Estates.
Enacted by the Legislative Council during the city’s fifth coronavirus wave, the rent moratorium became effective in early May. It barred landlords from taking action against tenants who defaulted on rents between January 1 and July 31.
Landlords have filed “a lot of cases” recently, according to Tony Lo, executive director and CEO of the ICI Property unit of Legend Upstar Holdings, the parent company of Midland IC&I.
“There has been a lot of [actions] to recover rent, as recovery was only stopped short by the ban,” he said. “Tenants took the opportunity to not pay rent. There was not even a chance to negotiate.”