CK Asset says Hong Kong luxury home project sale falls through

CK Asset Holdings

13/07/2023 14:25

HONG KONG, July 13 (Reuters) - Major Hong Kong property
developer CK Asset Holdings  1113.HK  said on Thursday its
HK$20.8 billion ($2.66 billion) deal to sell a luxury
residential development to a Singapore fund had lapsed after it
did not receive the first part payment.
    CK Asset sold the development to ORIC-Borrett Limited, a
fund owned by Sino-Suisse, in September in the financial city's
largest single residential deal. 
    The developer said in a filing the buyer had failed to pay
the first part payment of HK$1.04 billion and the accrued
interest, so it terminated the sale agreement on Thursday and
forfeited the HK$2.1 billion deposit paid by the buyer.
    "After the signing of the agreement, there were continuous
changes in the market and interest rates. Even though both
parties have tried to ... study different proposals to solve the
problem, an agreement could not be reached," company executive
director Justin Chiu said in a separate statement.
    Chiu said the company would put the development on the
market again.
    Hong Kong private home prices fell again in May following
four months of gains, as many home buyers stayed on the
sidelines amid uncertainty over interest rate hikes and the
economic outlook.
    Home prices in the city, which are among the most expensive
in the world, fell 15% last year in the first annual drop since
2008, with very few transactions in the luxury segment, property
agents said.    
    CK Asset added the collapse of the deal would not have a
material adverse impact on its business and financial position. 
   
    ($1 = 7.8232 Hong Kong dollars)

 (Reporting by Clare Jim
Editing by Mark Potter)
 ((clare.jim@thomsonreuters.com;))