Hong Kong property

Developer to see HK$1.47 billion in net proceeds from sale of luxury house in Hong Kong

PUBLISHED : Wednesday, 15 June, 2016, 11:51pm
UPDATED : Thursday, 16 June, 2016, 2:20pm

Chuang’s Consortium International says it will generate net cash proceeds of HK$1.47 billion from the sale of a luxury house being built at 15 Gough Hill on the Peak in Hong Kong to a company owned by Chen Hongtian for HK$2.1 billion.

Tycoon bought record HK$2.1 billion home on Hong Kong’s The Peak because his HK$380m property in Mid-Levels was ‘too tiny’

In a filing with the stock exchange, the buyer would pay 80 per cent, or HK$1.68 billion, in cash and the remaining 20 per cent will be paid by the transfer of a property in Shenzhen worth HK$420 million.

The 9,212 square foot house is being sold through Chuang’s indirect wholly owned company, Romantic, to Chen Family Asset Management, a British Virgin Islands-registered firm owned by Chen, according to the company statement.

There’s more than meets the eye in ‘record’ HK$2.1 billion home purchase by mainland tycoon in exclusive The Peak district

The buyer could save HK$170 million on stamp duty through the share transfer.

It is expected that interior decoration works will be inspected by the buyer in the third quarter of 2018 when completion is expected to take place, the filing said.

No cause for alarm,’ development chief says, after HK$2.1 billion Hong Kong house sale sets new record

The luxury house is being built on a site area of 18,469 sq ft. It comes with a 599 sq ft terrace, 14,916 sq ft garden, and 2,805 sq ft of car parking space.

Chuang’s said its share will resume trading on Thursday after being suspended on June 10.

The headline and the article have been amended to say that Chuang’s Consortium International will generate HK$1.47 billion, not HK$1.68 billion, in net proceeds; and the number in paragraph 2 should have read HK$1.68 billion, not HK$1.47 billion