Hong Kong’s commercial market declines have left some of the city’s once-prosperous veteran investors struggling financially, with experts expecting distressed sales to continue amid plunging property valuations.
The seasoned investor, who made his fortune in the manufacturing industry, had been an active property investor, with a wide portfolio spanning offices, luxury residential units, retail shops and parking spaces.
He was part of a consortium of 10 investors who bought 48 floors in The Center from CK Asset Holdings for HK$40.2 billion in 2018, making the skyscraper on Queen’s Road Central the world’s most expensive.
Chan, who owned seven office floors at The Center, sold the last two to Singapore’s DBS Group in September and November for an average price of HK$26,500 per square foot, an over 20 per cent discount to his acquiring costs, according to agents.
“Investments in retail and industrial properties are experiencing the largest losses, with capital values dropping by about 60 per cent,” Chan said in a phone interview last week. “The bigger the shops, the greater the losses. That makes it very difficult to sell these properties.”
