Chinese tycoon Chen Hongtian has Hong Kong property that includes Peak house seized by lenders
Chen Hongtian, a low-profile mainland Chinese tycoon, who was the talk of the town in Hong Kong for purchasing a house on The Peak for a record price almost seven years ago, has had at least three of his assets worth a total of about HK$7 billion (US$891.7 million) at time of purchase seized by lenders.
The house, a 9,212 sq ft property at 15 Gough Hill Road, was seized this month by receivers appointed by Bank of East Asia (BEA), according to government records. Chen bought it through Lambda Industrial - a firm he owns with two others, one of whom is believed to be his wife - for a record HK$2.1 billion in 2016. It was mortgaged twice with BEA in the first half of 2019.
BEA appointed Deloitte China partners Derek Lai Kar-yan and Ivan Chan Man-hoi as receivers and managers earlier this month, according to sources. In a receivership, the receiver will act primarily in the interest of the creditor who appoints them. This often results in the company being liquidated or dissolved, and may mean that other creditors are not repaid. "We are looking for a buyer for the Gough Hill Road property," Lai said.
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Lambda Industrial was renamed Chateau 15 Investments in 2017. Other directors of the company are Chen Yao Li Ni and Vincent Chen Peng Yu. Yao Li Ni is Chen's wife, according to Dow Jones' risk and compliance database.
A file photo of Chen Hongtian from November 2016. Chen had a fortune of 30 billion yuan, according to the Hurun Report 2022. Photo: Xiaomei Chen alt=A file photo of Chen Hongtian from November 2016. Chen had a fortune of 30 billion yuan, according to the Hurun Report 2022. Photo: Xiaomei Chen>
In an interview with the Post in June 2016, Chen said he bought 15 Gough Hill Road because an apartment he bought in August 2015 for HK$387 million in Opus Hong Kong in eastern Mid-Levels was "too tiny". The fifth-floor luxury apartment has also been taken over by receivers, said Deloitte's Lai.
Lai and Chan were appointed as receivers of the Opus Hong Kong property, which Chen bought with Yao Li Ni, by Bank of Communications in February this year. The apartment was mortgaged to the bank in August 2019. The receivers are in the process of reviewing the Opus apartment, Lai said.
Chen bought an apartment in Opus Hong Kong for HK$387 million in August 2015. Photo: Handout alt=Chen bought an apartment in Opus Hong Kong for HK$387 million in August 2015. Photo: Handout>
Chen lost control of other assets in the city, including commercial buildings Towers A and B of Cheung Kei Center in Hung Hom. The buildings, previously called One Harbourgate, were bought by Chen through Cheung Kei Center Limited for HK$4.5 billion in December 2016. The other directors of this company are Chen Yao Li Ni and Vincent Chen Peng Yu as well.
They were mortgaged with Hang Seng Bank in May 2019. The bank appointed Christopher So Man-chun and Victor Jong Yat-kit of PwC Hong Kong to take over the buildings this month.
Chen had a fortune of 30 billion yuan ranking him 172nd among China's richest in Hurun Report 2022, the same ranking as Hui Ka-yan, chairman of embattled developer China Evergrande Group. He once said that investors would shift their money out of Hong Kong if "localism" continued to spread.
Chinese tycoons are a major source of demand for luxury homes in Hong Kong. Agents said the seizure of Chen's properties did not reflect a decline in their desire for Hong Kong property.
The seizures are "isolated incidents", said Eric Lee, senior regional sales director at Centaline Property Agency. "Many of my clients are still interested in luxury Hong Kong properties."
Additional reporting by Enoch Yiu
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2023 South China Morning Post Publishers Ltd. All rights reserved.
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