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South China Morning Post
01-06-2025
- Business
- South China Morning Post
From riches to rags: Hong Kong's veteran property investors grapple with market downturn
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. Advertisement In April, receivers took over the luxury detached mansion in Pok Fu Lam where 'Cassette King' David Chan Ping-chi and his family had lived since the 1980s, marketing it for HK$430 million (US$54.8 million) last week. Chan, who defaulted on a loan of about HK$350 million from Fubon Bank earlier this year, attempted to sell his house for the same amount last year to repay the debt but failed to find a buyer, property agents said. 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. 'Cassette King' David Chan Ping-chi. Photo: SCMP '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.'
Mint
22-05-2025
- Business
- Mint
New World Gets Support From About 10 Banks for Loan Refinancing
(Bloomberg) -- New World Development Co. has secured commitments from about 10 banks for its HK$87.5 billion ($11.2 billion) loan refinancing, according to people familiar with the matter, as the cash-strapped builder races to complete the deal before the end of next month. Major banks Bank of China Ltd., HSBC Holdings Plc and Standard Chartered Plc, local lenders Bank of East Asia Ltd., Fubon Bank (Hong Kong) Ltd., Hang Seng Bank Ltd., and French lender Credit Industriel et Commercial along with several other financial institutions have completed the internal approval process to join the deal, with total commitments exceeding HK$20 billion, the people said. More banks are going through internal credit approvals and expect to finalize their commitments in the coming weeks, they added. New World has invited over 50 existing bank lenders to join the transaction, they said. While New World is eager to complete the refinancing and bolster its liquidity, a transaction with such a large number of participants can take time to process. Commitments from most of the lenders involved have yet to be finalized, but many bankers expect that the deal will eventually come together, the people said. Some banks are waiting for lenders with greater exposure to New World to sign on before they can secure their own internal approvals, the people added. HSBC and Standard Chartered declined to comment. New World, Bank of China, Bank of East Asia, Fubon Bank, Hang Seng and Credit Industriel et Commercial didn't immediately respond to requests for comment. New World is under pressure to complete the deal by the end of June as a covenant waiver on its existing facilities is set to expire. The initial deadline for banks to finalize their commitments for the refinancing was the end of May, but some lenders have indicated they need additional time to secure internal credit approvals, Bloomberg News reported earlier. If the waiver expires before a refinancing deal, some banks could demand immediate repayment, though that scenario is unlikely, Bloomberg News earlier reported. New World, controlled by the family empire of tycoon Henry Cheng, has been in discussions with banks since January seeking to refinance its bank borrowings maturing this year and beyond. The company also has multiple bond coupon payments due in June that will be closely watched by investors. It had total liabilities of HK$210.9 billion at the end of December 2024 and in June it has at least $116.6 million of coupon payments due, including on four perpetual notes. More stories like this are available on
South China Morning Post
20-05-2025
- Business
- South China Morning Post
Cassette King's US$55 million Hong Kong luxury house put on market amid distress
A luxury detached house in Pok Fu Lam, owned by Hong Kong's 'Cassette King' David Chan Ping-chi, has been put on the market by the receivers in yet another distressed sale in the city, after lender Fubon Bank seized the property to recover unpaid debt. The sea-view property at 188 Victoria Road, valued at HK$430 million (US$55 million), comprises a three-storey house with a basement and features a private driveway that ensures a high level of privacy, Savills, the sole marketing agent, said on Monday. It includes an 18,000 sq ft garden. The house would be sold on an 'as-is' basis with vacant possession, Savills said. It would receive expressions of interest until noon on July 8, it added. 'The property is a rare sea-view residential single lot in the area,' said Raymond Wan, chief senior director of investment at Savills Hong Kong. 'The owner has occupied it since the 1980s' and it was likely to attract significant market attention, he added. David Chan Ping-chi has been selling some of his prized assets in Hong Kong. Photo: SCMP Creditors have racked up distressed sales of properties in recent months amid pressure on borrowers to service their loans. Interest rates in Hong Kong, which track policy moves in the US, reached the highest levels since 2007 before the Federal Reserve started cutting rates from September last year, crippling many overstretched borrowers.
Business Times
21-04-2025
- Business
- Business Times
Asean remains attractive amid global trade, supply chain disruptions: UOB CEO Wee Ee Cheong
[SINGAPORE] The Asean region remains an attractive market to do business with, even amid uncertainties due to geopolitical risks and the impact of the US tariffs, said UOB chief executive Wee Ee Cheong. Wee, who is also UOB's deputy chairman, expects disruption and slower demand in the immediate future as a result of divides in global trade and supply chains. But he noted that Asean – as well as UOB, which turns 90 this year – has weathered many crises before, and there are further opportunities for both to emerge stronger. 'In a multipolar world order, businesses and countries will face greater urgency to diversify the markets, integrate more closely regionally and innovate to create more value,' said Wee at UOB's annual general meeting (AGM) on Monday (Apr 21). Wee believes there will be 'tremendous opportunities' to grow the lender's franchise, and that its Asean strategy is for the long term and will take patience, 'but it will be rewarding when executed well'. A shareholder asked about UOB's view on the lower confidence in the US dollar and in US assets amid the current volatility. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up UOB group chief risk officer Chan Kok Seong expects the trend to de-dollarise to continue, but added that the decline in the prominence of the US dollar will likely be a slow process. 'As a bank that focuses on South-east Asia and positioned to benefit from trade flows, we are well-positioned to pivot to a more multipolar world, where trade in different currencies will gain more traction.' Wee also emphasised that the lender focuses on South-east Asia, in response to shareholder questions about UOB's disposal of its retail banking franchise in China. UOB in February 2025 announced that it will sell its retail banking business in China to Fubon Bank for an undisclosed amount. It retains its wholesale banking business in China. 'Greater China is a connectivity play for us, so our commitment continues to be in Asean,' Wee said. 'China is a big country. For us, we have only 15 branches; no matter what we do, it is not going to make a difference.' UOB group chief financial officer Leong Yung Chee added that the size of the transaction was 'negligible', and that the focus of its China business remains on the connectivity of its Chinese clients and Chinese businesses with Asean markets. Succession planning Meanwhile, in response to a shareholder question on succession, UOB chairman Wong Kan Seng said that the topic is something that the board and nominating committee 'have been considering over a period of time'. 'The process is on, and I can assure you that is in place. Any time, when the decision is made, we will definitely inform our shareholders as well as the public,' he said. Wee noted that renewal is 'an ongoing process', and that the lender has a 'robust' process in place. 'I personally spend much time and effort to grow our own people, ensuring that each growing tree is rooted in our values of honour, unity, commitment and enterprise.'
