Chinese tycoon Chen Hongtian in talks with banks to resolve ‘mild’ mortgage defaults on Hong Kong property worth US$1.27 billion
- Talks on repayments are proceeding with banks and there are plans to sell a stake in a commercial tower, says Chen Hongtian, the chairman of Cheung Kei Group
- The three properties mortgaged with the banks for HK$6 billion are worth HK$10 billion, tycoon says
Chinese tycoon Chen Hongtian is in discussions with lenders to retrieve assets worth HK$10 billion (US$1.27 billion) after a “short-term liquidity issue” forced him to miss mortgage payments.
There are plans to inject fresh funds to resolve the “mild default” issue related to three properties, including a HK$2.1 billion house on The Peak, said the chairman of Cheung Kei Group, which owns offices, hotels and finance firms in Hong Kong.
“We’re in talks with the banks about repayment arrangements for two residential properties, and we’re talking to a friend about buying some shares in Cheung Kei Center,” he said in an interview on Friday, without elaborating.
“My company has the ability to handle short-term liquidity issues. I hope the third parties can give us some space and do not interrupt the company’s normal operation.”
The three properties – a 9,212 sq ft house at 15 Gough Hill Road, a flat in Opus Hong Kong in eastern Mid-Levels and Cheung Kei Center commercial building in Hung Hom – were mortgaged with banks for around HK$6 billion, but were valued at around HK$10 billion, according to Chen.
