Chinese tycoon Chen Hongtian’s embattled Cheung Kei Group to sell equity in offshore assets to overcome cash crunch
- The company is looking to sell equity in two properties in Canary Wharf, London, which are currently undergoing restructuring
- Cheung Kei says it has encountered a ‘short-term cash flow problem’ and that the scale and quality of its assets are ‘very high’
Cheung Kei Group, a private mainland developer controlled by Shenzhen-based tycoon Chen Hongtian, unveiled on Monday a plan to offload equity in some overseas assets to overcome its “short-term cash flow problem”.
Two properties located in Canary Wharf, London, are currently undergoing restructuring, according to a company statement posted on WeChat, a social media platform.
“Like all companies with heavy assets, Cheung Kei has also encountered a short-term cash flow problem,” the company said in the statement.
“We hope all sectors of the society, especially the media and the public, have more understanding and tolerance for entrepreneurs and look at the enterprises’ mild mortgage default problem in a rational perspective,” it said.
Cheung Kei Group did not specify which media outlet it was referring to in the statement. But the statement follows media reports about the company’s financial problems on platforms like internet portal Sohu.com and on WeChat.
In March, Cheung Kei Group’s three properties in Hong Kong, including a 9,212 sq ft house at 15 Gough Hill Road, a flat in Opus Hong Kong in eastern Mid-Levels and Cheung Kei Center commercial building in Hung Hom, were taken over by creditors following mortgage defaults.