Chinese tycoon Chen Hongtian has Hong Kong property that includes Peak house seized by lenders
- The 9,212 sq ft property at 15 Gough Hill Road was seized this month by receivers appointed by Bank of East Asia
- Opus Hong Kong apartment is taken over by receivers on behalf of Bank of Communications
Chen Hongtian, a low-profile mainland Chinese tycoon, who was the talk of the town in Hong Kong for purchasing a house on The Peak for a record price almost seven years ago, has had at least three of his assets worth a total of about HK$7 billion (US$891.7 million) at time of purchase seized by lenders.
BEA appointed Deloitte China partners Derek Lai Kar-yan and Ivan Chan Man-hoi as receivers and managers earlier this month, according to sources. In a receivership, the receiver will act primarily in the interest of the creditor who appoints them. This often results in the company being liquidated or dissolved, and may mean that other creditors are not repaid. “We are looking for a buyer for the Gough Hill Road property,” Lai said.
Lambda Industrial was renamed Chateau 15 Investments. Other directors of the company are Chen Yao Li Ni and Vincent Chen Peng Yu. Yao Li Ni is Chen’s wife, according to Dow Jones’ risk and compliance database.
Lai and Chan were appointed as receivers of the Opus Hong Kong property, which Chen bought with Yao Li Ni, by Bank of Communications in February this year. The apartment was mortgaged to the bank in August 2019. The receivers are in the process of reviewing the Opus apartment, Lai said.
Chen lost control of other assets in the city, including commercial buildings Towers A and B of Cheung Kei Center in Hung Hom. The buildings, previously called One Harbourgate, were bought by Chen through Cheung Kei Center Limited for HK$4.5 billion in December 2016. The other directors of this company are Yao Li Ni and Vincent Chen Peng Yu as well.
They were mortgaged with Hang Seng Bank in May 2019. The bank appointed Christopher So Man-chun and Victor Jong Yat-kit of PwC Hong Kong to take over the buildings this month.
Receivers of a luxury property on The Peak linked to Evergrande put it up for sale
Chinese tycoons are a major source of demand for luxury homes in Hong Kong. Agents said the seizure of Chen’s properties did not reflect a decline in their desire for Hong Kong property.
The seizures are “isolated incidents”, said Eric Lee, senior regional sales director at Centaline Property Agency. “Many of my clients are still interested in these [distressed luxury Hong Kong] properties.”
Additional reporting by Enoch Yiu
