HK Tower Sale

HK Tower Sale Given Go Signal By Court

HONG KONG – Creditors can proceed with the sale of the 28-storey Goldin Financial Global Centre at Kai Cheung Road in Kowloon Bay after Hong Kong’s High Court ruled in their favour on Thursday, reported Mingtiandi on Friday morning (30 October).

The court affirmed that the Kohn Pederson Fox-designed building with an area of 852,433 sq ft (79,153 sq m) and the company that owns it, Smart Edge, is rightfully in the hands of Borrelli Walsh, the receivers appointed by DB Trustees (Hong Kong) Ltd.

In July, the Deutsche Bank affiliate seized the Kowloon East HQ of Goldin Financial Holdings after the latter failed to repay a mezzanine loan amounting to HK$6.8 billion.

The court ruling thwarts Goldin Real Estate Financial Holdings’ Chairman Pan Sutong attempts to divest the commercial property to a different acquirer, as the receivers have already initiated a tender to sell the building for a minimum of HK$12 billion (US$1.55 billion).

“Prior to this court hearing, there was already strong interest from prospective buyers from Greater China and abroad,” Paul Hart, Executive Director & Head of Commercial for Greater China at Knight Frank, told the news portal.

“The ruling has cleared the air, confirming beyond doubt that the receivers and managers have the authority to sell the property and, Smart Edge, the company that holds the property.”

In September, Borrelli Walsh appointed Knight Frank as the exclusive marketing agent for the sale of Goldin Financial Global Centre. The tender, soliciting expressions of interest from would-be buyers, will close on 11 November.

“[It] is by far the best quality office building available for sale in Hong Kong, and we are working closely with the receivers and managers to sell this impressive asset,” remarked Knight Frank’s Hart.

If the tower changes hands for HK$12 billion (HK$14,000 psf), it would represent a 34 percent discount from the commercial property’s valuation of HK$18.5 billion as of 31 December as stated in the most recent annual report of Goldin, which is presently facing debts of about US$2 billion (HK$15.5 billion).

On 16 Oct, Goldin Financial told the Hong Kong stock exchange that it had entered into a provisional transaction to dispose the building for a higher price of HK$14.3 billion. It identified the buyer as Fong Tim, who it claimed has forked out a refundable deposit of HK$200 million.

However, the purported deal can no longer proceed as the High Court has asserted the legitimacy of the receivers.

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