The US has sold its consulate staff compound in one of Hong Kong’s most exclusive neighborhoods for HK$2.57 billion (US$332 million) to local developer Hang Lung Properties Ltd Ltd (恒隆地產).
The price, announced yesterday by CBRE Group Inc, which handled the sale, was lower than the HK$3.1 billion to HK$3.5 billion valuation from Vincorn Consulting and Appraisal Ltd (泓亮咨詢評估).
Hang Lung said that it would invest about an additional HK$4 billion to develop luxury detached houses on the site.
“The price of this rare and premium land lot is reasonable and the purchase is a vote of confidence in Hong Kong’s future,” the firm said in a statement.
The site in Shouson Hill, on the southern side of Hong Kong Island, comprises six low-density apartment buildings spread over almost 8,825m2 and offers ocean views over Deep Water Bay.
The redevelopment should be completed by 2024, Hang Lung said.
A US government representative on Wednesday said that the decision to sell the compound was part of its global reinvestment program and some of the proceeds from the transaction would be reinvested into multiple properties that the US owns in Hong Kong.
“It will not affect our presence, staffing or operations in any way,” the spokesperson said in a statement.
The sale comes at a sensitive time, with US companies considering moving out of the territory because of escalating political conflicts and disquiet over the National Security Law imposed by China.
An American Chamber of Commerce in Hong Kong survey last month found that about 40 percent of its 154 members were considering leaving the territory.
Shouson Hill is one of the territory’s most exclusive neighborhoods, where some of its richest tycoons, including Li Ka-Shing (李嘉誠), own houses.
The US government purchased the property in 1948, records lodged with the Hong Kong Land Registry show.
An adjacent property was bought by Chinese developer China Resources Land Ltd (華潤置地) for HK$5.9 billion in 2018.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s