Exclusive | Chinese bad-debt firm emerges as second-biggest partner among buyers of Link Reit’s 17 HK malls
Purchase marks Chinese bad-debt firm’s foray into Hong Kong retail property
A Chinese state processor of bad debt has made its first foray into Hong Kong’s retail real estate, emerging as the second-biggest shareholder in the consortium that paid HK$23 billion (US$2.9 billion) to buy Link Reit’s 17 shopping centres in the city.
China Great Wall Asset Management, established in 1999 to manage and process the non-performing loans of the Agricultural Bank of China, owns 30 per cent in the consortium through its Hong Kong-listed unit Great Wall Pan Asia Holdings, according to sources familiar with the deal.
Industry experts said more state-owned mainland capital will come to Hong Kong and overseas despite concerns over tightened capital control by Beijing and outbound merger and acquisition deals by the Chinese will pick up next year.
Great Wall Pan Asia was formerly known as Armada Holdings. Armada itself, as a listed entity, was renamed from the SCMP Group and sold to China Great Wall for HK$1.57 billion cash in August 2016 after Kerry Media sold the South China Morning Post to Alibaba Group Holding.
Trading in the shares of Great Wall Pan Asia were halted this morning on the Hong Kong stock exchange, pending the announcement of an unspecified venture. The stock rose 1.2 per cent yesterday before the suspension to HK$1.65.