12-08-2025
- Business
- South China Morning Post
Hong Kong's Worfu mall faces seizure after US$190 million loan default
Bank creditors are considering seizing control of a Hong Kong shopping centre after a venture backed by Schroders Capital and Chelsfield's Asia fund defaulted on a loan tied to the property, according to people familiar with the matter.
The creditors are looking to appoint a receiver for the Worfu mall, formerly known as Provident Square, in Hong Kong's North Point district, said the people, asking not to be identified for discussing private matters.
The mall was used as collateral for the about HK$1.5 billion (US$190 million) loan that a joint venture owned by a consortium including Schroders Capital and Chelsfield Asia Fund 1 defaulted on earlier this year, the people added. United Overseas Bank was the majority lender of the facility.
A colourful mural by artist Camille Walala signals the Provident Square mall's rebranding efforts in North Point. The mall, bought by real estate investment fund Pamfleet, was renamed Worfu in January 2019. Photo: Cheryl Arcibal
The joint venture's financial troubles underscore the challenges global investors still face in Hong Kong's beleaguered commercial real estate sector. Weak property values mean that even global asset managers face pressures on investments made during the market's previous highs.
A Schroders spokesperson said the firm was in discussions with banks on managing the assets to deliver the best possible outcome. Chelsfield Asia declined to comment. UOB did not respond to a request for comment.
Chelsfield Asia Fund 1 teamed up with real estate manager Pamfleet in 2018 to buy the Worfu mall from Hong Kong tycoon Li Ka-shing-backed Fortune Reit. The sale price was HK$2 billion, 88 per cent above an appraised value of HK$1.061 billion at the time. Pamfleet was acquired by Schroders in 2020.
In January, the Schroders-Chelsfield consortium put the mall up for sale by public tender, but no deal was reached.
Another investment property in Schroders Capital's portfolio – The Nate, a serviced apartment tower in Tsim Sha Tsui, the city's bustling tourist district – entered receivership last month, according to Land Registry records.
