Banks Consider Seizing Hong Kong’s Worfu Mall After Loan Default

(Bloomberg) – Bank creditors intend to seize the control of a Hong Kong shopping center after an attempt supported by Schroders Capital and Chelsfield’s Asian Fund, familiar with the issue, after defining a loan attached to the property.

Creditors want to assign a buyer for Worfu Mall, previously known as Provident Square in the North Point area of Hong Kong.

Mall was used as a guarantee for a loan of a common attempt by a consortium, including Schroders Capital and Chelsfield Asia Fund 1, in the earliest year of this year. United Overseas Bank Ltd. The majority of the facility loan.

The financial problems of the joint initiative underlines the difficulties faced by global investors in the siege of Hong Kong’s commercial real estate sector. Weak property values mean that even global assets managers face pressures on investments made at the highest levels of the market.

A Schroders spokesman said the firm had discussed with banks to manage assets to present the best possible result. Chelsfield Asia refrained from commenting. UOB did not respond to the request for comment.

Chelsfield Asia Fund 1 met with the real estate manager Pamfleet in 2018 to buy Worfu Shopping Center from Fortune REIT supported by Hong Kong Tycoon Li Ka Sing. The sales price was 2 billion HK ($ 255 million) over 88% of the $ 1,061 billion HK. Pamfleet was purchased by Schroders PLC. In 2020.

In January, the Schroders-Chelsfield consortium launched the shopping center with a public tender, but no agreement was reached.

According to Land registry, another investment ownership in Schroders Capital’s portfolio – Nate – Nate, a apartment tower served in the city’s moving tourism region Tsim Sha TSUI.

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