Missing tycoon Xiao Jianhua’s relatives sell Causeway Bay shop for a massive 31 per cent loss
- Unit in Causeway Place shopping centre was owned by the Chinese billionaire’s sister and brother-in-law
- Shop bought in 2013 for HK$26.23 million was sold on Thursday for a loss of HK$8.23 million
A shop in Causeway Bay, owned by relatives of Chinese billionaire Xiao Jianhua, the founder of the troubled Tomorrow Group, was sold at a massive loss as they start unwinding their property portfolio in the city.
On Thursday, Xiao Yonghong and Sun Darui, the younger sister and brother-in-law of the missing tycoon, offloaded a 337 square feet retail unit at Causeway Place shopping centre for HK$18 million, according to Land Registry data. The couple had paid HK$26.23 million (US$3.34 million) in May 2013, incurring a loss of HK$8.23 million or 31.4 per cent.
Xiao’s two sisters are reported to have bought about HK$300 million worth of property in Hong Kong since 2011.
The latest transaction highlights the fragile state of the retail sector in Causeway Bay – which is home to the world’s most expensive retail street by rental value. Businesses in the popular retail district have been frequently disrupted over the past two months as a large number of anti-government protests against the now-suspended extradition bill started in the area.
Retail sales in Hong Kong have taken a beating from the US- China trade war as well as the social unrest. Sales fell 6.7 per cent in June, down for a fifth consecutive month, the latest month for which data is available.