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Martin Choi

Hong Kong commercial property One HarbourGate East Tower in Hung Hom, among a series of assets seized last year from Chinese tycoon Chen Hongtian, has been put on sale for a second time amid weak office market sentiment.
The receivers have put the tower back on the market for a new round of bidding, according to a statement released on Thursday by international real estate firm Savills, which said it has been appointed as the sole agent for the sale.
The prime harbourfront property was valued at around HK$7 billion (US$896 million) in 2022, according to a Savills statement when it was first put on the market in May 2023.
Chen’s company, Cheung Kei Group, blamed a “short-term cash-flow disruption” for losing control of three properties, which also included a 9,200 sq ft house on The Peak that he bought for HK$2.1 billion in 2016.
The One HarbourGate building, bought for HK$4.5 billion in 2016, has about 279,000 sq ft of commercial space. Completed in 2016 by Wheelock Properties, it comprises an office tower and a two-storey retail space along the waterfront, with 155 car-parking spaces. It serves as the headquarters for Sun Life Hong Kong.
The unit price will be between HK$10,500 and HK$12,000 per square foot, according to Vincent Cheung, managing director of Vincorn Consulting and Appraisal.
The deadline for offers is noon on August 20.
“As we venture into the latter half of 2024, the commercial property market has undergone a period of adjustment, moving away from its previous peaks and marked by several substantial transactions,” said Raymond Wan, chief senior director of investment at Savills.
“This shift in market dynamics has cultivated an environment where buyers are primarily focused on acquiring high-quality assets, viewing the current climate as an opportune moment to secure these highly coveted properties.”
More office buildings are expected to come up for sale as financial institutions are more cautious about financing commercial assets, Cheung said.

“In case the owner cannot get the recurring loans from the financial institutions, the assets would be foreclosed by the receiver for sale,” he said.
High vacancy rates and high pressure on commercial rentals are also putting cash flow pressure on commercial asset owners, he added.
“In the real estate landscape of 2024, distressed properties have taken centre stage, with numerous transactions being executed at remarkably enticing prices,” said Godfrey Cheng, deputy senior director of investment at the CEO office of Savills.
Additional reporting by Cheryl Arcibal


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Hong Kong property

Hong Kong office tower seized from tycoon Chen Hongtian put up for new round of bidding

Hong Kong commercial property One HarbourGate East Tower in Hung Hom. Photo: Handout

Chen Hongtian, chairman of Cheung Kei Group, pictured in November 2016. Photo: Xiaomei Chen

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No 15 Gough Hill Road on The Peak, bought by Chen for a record HK$2.1 billion in 2016, was seized by Bank of East Asia in March last year. Photo: May Tse

Chen Hongtian, chairman of Cheung Kei, poses for a picture in Shenzhen in November 2016. Photo: Xiaomei Chen

Chinese tycoon Chen Hongtian’s seized luxury Hong Kong flat sells for US$53 million, 39% below market price

Opus Hong Kong is the first residential project in Asia designed by architect Frank Gehry. Photo: Handout

Chen Hongtian, pictured in 2016. Photo: Xiaomei Chen

Tycoon Chen Hongtian’s seized US$86.7 million Frank Gehry-designed Hong Kong flat sells at 38% discount

Swire Properties completed Opus Hong Kong, Frank Gehry’s first residential building in Asia, at 53 Stubbs Road, The Peak, in 2012. Photo: Dickson Lee

Chen Hongtian, chairman of Cheung Kei Group, pictured in Shenzhen in November 2016. Photo: Xiaomei Chen

Creditors put tycoon Chen Hongtian’s US$86 million Frank Gehry-designed Hong Kong flat up for sale

Developed by Swire Properties, Opus Hong Kong is the fruit of a collaboration with Frank Gehry – it is his first and only residential project in Asia. Photo: Handout

Chen and his wife bought the fifth-floor flat on 53 Stubbs Road for HK$387 million in September 2015. Photo: Xiaomei Chen

Seized US$892 million Hong Kong commercial property put on sale as tycoon Chen Hongtian fights to reclaim it

An artist’s rendering of the One HarbourGate property in Hung Hom, produced during its development phase in 2015. Photo: Handout

Chen Hongtian, Chairman of Cheung Kei Group, pictured in Shenzhen on November 26, 2016. Photo: Xiaomei Chen

The house at No. 15 Gough Hill Road, The Peak, pictured on March 30, 2023. Photo: May Tse

Business

Property

Hong Kong & China

Valued at US$896 million in 2022, the waterfront office tower in Hung Hom was seized by creditors in early 2023


Valued at US$896 million in 2022, the waterfront office tower in Hung Hom was seized by creditors in early 2023.


Property investment

Hong Kong office tower seized from tycoon Chen Hongtian put up for new round of bidding

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;}Valued at US$896 million in 2022, the waterfront office tower in Hung Hom was seized by creditors in early 2023

Valued at US$896 million in 2022, the waterfront office tower in Hung Hom was seized by creditors in early 2023