Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2022 Event Calendar
    • APAC Residential Forum 2022
    • Asia Logistics Forum 2022
    • Asia REIT Forum 2022
    • APAC Data Centre Forum 2022
    • Singapore Focus Forum 2022
    • Office Strategies Forum 2022
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

Chinese Govt Derails Hang Lung’s Purchase of US State Dept Site in Hong Kong

2020/12/30 by Michael Cole Leave a Comment

37 Shouson Hill

The US may be holding onto its Shouson Hill site for a bit longer

Just a few weeks after cancelling 2020’s biggest IPO, China’s central government has seized another opportunity to assert its authority in the business realm by blocking an agreement for the sale of a US consular property in Hong Kong.

In a joint announcement to the Hong Kong stock exchange today, Hang Lung Group and its real estate unit Hang Lung Properties revealed that the city’s Land Registry had sent notice on 24 December that it declined to process the HK$2.6 billion ($331 million) sale of the residential property on Shouson Hill, due to objections from China’s central government.

Altus - AE Free Trial In-story Banner

“The Central People’s Government of China (“CPG”) has advised the Government of Hong Kong SAR that if the US Consulate General in Hong Kong SAR intends to rent, purchase, sell, or otherwise acquire or dispose of any real estate property in Hong Kong SAR, the Government of the US must make a written application to the CPG via the Office of the Commissioner of the Ministry of Foreign Affairs of China in Hong Kong SAR at least 60 days prior to any intended transaction, and shall not proceed with the intended transaction without the written consent of the CPG,” the Land Registry informed Hang Lung, according to the statement.

Chinese foreign ministry spokesman Wang Wenbin added more detail today, stating that the Chinese government was requesting the application, “in light of U.S. regulations on the management of registered properties of foreign missions in the United States and based on the principle of reciprocity,” according to a report by Reuters.

Picking Quarrels and Provoking Trouble

In its statement, Hang Lung referred to the Land Registry’s notice as “exceptional,” and said that the US government disagreed with the assertions made by their mainland counterparts. The developer said that it is working with the US to explore the feasibility of extending the closing period for the transaction, which was due to be fulfilled by 30 December.

wang-wenbin foreign ministry

Wang Wenbin would like the State Dept to say “Pretty please?”

However, the foreign ministry’s Wang added in comments to the press today that, “Only when they get the approval in writing can they proceed.”

The Chinese government’s objections to the sale of the 95,000 square foot (8,800 square metre) site are based on the US Consulate General in Hong Kong not being a commercial entity and the plot, which the US had purchased from Hong Kong’s colonial government in 1948 for use as staff housing, was declared not to be an ordinary real estate property, according to Hang Lung.

Based on these conditions, Chinese authorities are asserting that the “sale of the Property involves foreign affairs between The People’s Republic of China (“China”) and the US and should not be regarded as an ordinary commercial activity,” Hang Lung said.

Unwanted Luxury Site

The US consulate began marketing the site in one of Hong Kong’s most expensive residential districts in June of this year, with the tender having been concluded three months later at a price around 18 percent less than the low end of price expectations when the tender kicked off.

The tender for the plot attracted only two bids, including Hang Lung’s winning offer, with a poll by the South China Morning Post conducted in August indicating that many of the city’s largest developers had steered clear of what was regarded as a controversial sale, due to frictions between China and the US.

Through legal counsel, the US is contesting China’s statement that written approval is required for the sale, and has indicated that it has fulfilled all obligations and requirements related to the sale, according to Hang Lung.

The US is also asserting that diplomatic relations are not relevant to property titles, and that the Land Registry, which normally functions as a record keeper, has no right to deny registration of the sale.

Hang Lung said that it is seeking legal advice related to the transaction, and will keep the market informed of any developments.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Projects Tagged With: cm-hk, daily-sp, Featured, Hang Lung Properties, highlight, Shouson Hill

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Mingtiandi Delivered

MTD TV

MTD TV proptech show
COVID-19 Accelerates Proptech Adoption in Asia: Watch on MTD TV
MTD TV data centre panel
Blackstone, Actis Predict Continued Growth for APAC Data Centres on MTD TV

More MTD TV Videos>>

People in the News

serene nah kerry
Kerry Properties CFO Resigns After Less Than 8 Months on Developer’s Board
Lu Yi Shimao
Asia Real Estate People in the News 2022-06-27
Wu Jianxin Kaisa
Asia Real Estate People in the News 2022-06-20
Graham Mackie Tishman
Tishman Speyer Appoints Graham Mackie to Lead APAC Push Beyond China and India

More Industry Professionals>>

People in the News

Kerry Properties CFO Resigns After Less Than 8 Months on Developer’s Board

serene nah kerry

Hong Kong-listed developer Kerry Properties waited until the city was transfixed with the arrival of a visitor from the … Read More>>

Asia Real Estate People in the News 2022-06-27

Lu Yi Shimao

A senior appointment by one of China’s crew of defaulting privately-controlled developers leads this week’s roundup of … Read More>>

Asia Real Estate People in the News 2022-06-20

Wu Jianxin Kaisa

Top level executive changes at a pair of major mainland real estate companies lead this week’s round-up of personnel … Read More>>

Tishman Speyer Appoints Graham Mackie to Lead APAC Push Beyond China and India

Graham Mackie Tishman

US developer Tishman Speyer has hired industry veteran Graham Mackie as a managing director to lead the firm’s Asia … Read More>>

More Industry Professionals>>

Latest Stories

Ting Lim JLL
Mercatus Selling 16 Collyer Quay in Singapore to China’s Bright Ruby for $717M
serene nah kerry
Kerry Properties CFO Resigns After Less Than 8 Months on Developer’s Board
Kevin Kang H3
CDL, HThree Buying Downtown Melbourne Office Tower From AMP for $162M 

Sponsored Features

Should Proptech Give Us Sleepless Nights?
Hong Kong’s Evolving Commercial Real Estate Landscape
Opportunities in the Greater Bay Area

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2022 China Advertising Media Ltd (Samoa). All rights reserved.