Cheung Kong loses out over Apex
Firm seeks harmony in ending deal but says sale of hotel units not collective investment scheme
Cheung Kong has emerged as the loser in the nearly three-month long tussle with the government over the controversial sale of its hotel development at Kwai Chung.
Yesterday, the developer said in an announcement that after discussions with the Securities and Futures Commission, it would arrange for the cancellation of the provisional contracts and sales and purchase agreements of the hotel rooms at Apex Horizon.
Cheung Kong insisted that it did not agree with the securities watchdog that the sale constituted a collective investment scheme, which requires special approval.
However, it said the difference in legal opinion might lead to uncertainty for buyers.
The sale of the hotel suites, which made headlines in February as it was the first time in Hong Kong that a developer had sold hotel rooms - which are classified as commercial property - individually to buyers.
On February 18 and 19, Cheung Kong sold all 360 units in Apex Horizon, reaping HK$1.4 billion - almost seven times the land premium it paid the government when it applied to change the site from industrial to non-industrial use.
