Hong Kong developer Lai Sun Development has agreed to sell its 50% interest in a prime Central district office tower for HK$3.5 billion (US$450 million), according to a regulatory filing. The move marks one of the city’s largest commercial property transactions this year.
Facing tightening liquidity, Lai Sun will receive HK$2.4 billion in net proceeds — a critical boost as the firm works to refinance loans and offload assets amid mounting financial pressure. Hong Kong’s highly leveraged developers continue to struggle with weak commercial demand, falling sales, and shrinking funding channels.
🔹 Deal Highlights
- The sale includes 12 of the building’s 27 floors, plus parking spaces.
- Buyer: Jasmine Investment Development IV Limited (BVI-incorporated).
- Remaining 50% stake is held by CCB International, the investment banking arm of China Construction Bank.
- Transaction reflects a 6.7% discount to the building’s July valuation.
- Lai Sun expects to record a HK$261 million accounting loss, though it will be non-cash.
Both Lai Sun and parent company Lai Sun Garment said the sale will significantly strengthen the group’s financial position, shifting them from net current liabilities to net current assets once the transaction closes in January, and following a successful loan refinancing completed in September.
Still, concerns remain: auditors recently flagged uncertainty over Lai Sun’s ability to continue as a going concern after the company reported a HK$2.9 billion annual net loss, with HK$4.5 billion in excess current liabilities. It also faces US$524 million in bond repayments next year — the highest among Hong Kong’s distressed issuers.