Fugitive tycoon Joseph Lau Luen-hung sells Hong Kong office tower for record HK$12.5bn a day after buying US$48m diamond
Tycoon stands to get a hefty special dividend from record HK$12.5b deal for Wan Chai block
Fugitive tycoon Joseph Lau Luen-hung is seen as the likely major beneficiary from his company's record-breaking HK$12.5 billion sale of a Wan Chai office tower, standing to reap a special dividend estimated in the billions of Hong Kong dollars.
The controlling shareholder of Hong Kong-listed developer Chinese Estates Holdings announced on Thursday the sale of the MassMutual Tower, a 26-storey Grade A office building at Gloucester Road, Wan Chai, which is the headquarters of Chinese Estates.
The sale, to mainland developer Evergrande Real Estate, was the most expensive office transaction in Hong Kong on record and came in the same week that Lau spent a total of HK$597 million on two rare diamonds at a Geneva auction.
READ MORE: Mystery diamond buyer revealed: Hong Kong billionaire Joseph Lau spends US$48m on ‘Blue Moon Diamond’ for seven-year-old daughter
The tower deal is the latest in a string of major asset sales by Chinese Estates since Lau was convicted of bribery in Macau in March last year.
Lau, who was handed a jail term of five years and three months by a Macau court, has not served time behind bars due to the lack of an extradition treaty between Hong Kong and Macau.
"The pattern we have seen in previous months is Chinese Estates selling assets and paying high special dividends, which mostly went to Lau," a fund manger who requested anonymity said.
"I do not think Lau is cashing out his assets in Hong Kong, as he also bought back quality properties from the company."