According to Forbes, on September 29, CK Asset Holdings, the flagship real estate firm of Hong Kong’s richest tycoon Li Ka-Shing, has recently made an unexpected announcement. It will sell one of Asia’s most expensive residential projects to a Singapore fund for $2.65 billion amid a slump in the economy.

The outlet, citing a Hong Kong Stock Exchange filing, reported that CK Assets has agreed to sell ORIC-Borrett, its only issued share in Aim Clever Holdings, and pocket an $802.5 million profit. 

ORIC-Borrett is owned by LC Vision Capital 1, a sub-fund founded by a Singapore-based wealth manager Sino Suisse Capital.

The transaction is a luxury real estate project called 21 Borrett Road in Mid-Levels District in Hong Kong. It is owned by Bristow Investment, a direct wholly-owned subsidiary of Aim Clever.

The project comprises 152 residential units, 242 residential car parking spaces, and 31 motorcycle parking spaces.

The deal only covers the unsold portion, including 148 residential units with accompanying car-parking space and an additional 86 car and 31 motorcycle parking spaces.

The residential unit’s price was $7,900 per square foot, a drop of 30% from the average cost of the previously sold 4 units. The transaction is expected to be completed by March 2025.

As reported by Apollo News, Li Ka-Shing’s decision came after the Hong Kong residential property price index hit a record low at 368.2 in August, down 2.26% from July and a drop in 3 consecutive months.

Luo Shangpei, director of business development at Galaxy Securities, commented that CK Assets sold the remaining residential units at a price far lower than the first-hand transactions of property in recent months.

This signals the company is not optimistic about the luxury housing market in Hong Kong as well as the overall real estate market in the coming years.Forbes noted that this is CK Assets’ second property transaction this year. In March, one of its subsidiary CK Steel Holdings already sold its shares in Bluebutton Holdco 5 Broadgate (Jersey), a firm that owns commercial properties in London, for about $788 million.

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