Luxury house on The Peak formerly owned by bankrupt HNA Group sells at a loss of US$15.4 million
- House 6 at Twelve Peaks was sold to Guo Deying, who shares the same name as the founder of Coolpad Group, for HK$387 million
- Creditors of HNA were given the go-ahead to sell its assets, including the luxury villa, in late October by a Chinese court
The details were confirmed by several property agents approached by the Post.
The price was 23.5 per cent lower than the purchase price of HK$506 million paid by the original buyer in 2015.
It was “a bargain to the buyer,” said Eric Lee, senior regional sales director at Centaline Property Agency.
Coolpad did not immediately answer an email from the Post. HNA Group’s website could not be reached and the company’s spokeswoman did not immediately respond.
At 4,241 square feet, the price translated to HK$91,252 per sq ft. The stamp duty of HK$16.45 million, or 4.25 per cent of the property’s value, meant Guo was a first-time buyer who had acquired Hong Kong permanent residency, according to HK01.
PwC was appointed as the receiver of the house, at 12 Mount Kellett Road. A tender was then held, with the deadline postponed from late December to mid-January as the two bids received did not meet the reserve price, according to HK01.
The owner of House 6, according to the Land Registry, was a company called Fortune Runner Hong Kong Investment, which bought it in 2015 for HK$506 million, or about HK$119,300 per square foot.
Company registry information from 2018 showed that three of Fortune Runner’s directors were senior executives with HNA Group (International), the major offshore arm of HNA Group.
Lee of Centaline expects a 5 to 10 per cent increase in the prices of super-luxury homes in Hong Kong this year, depending on the supply.
He said luxury projects like Mount Nicholson and 21 Borrett Road saw excellent sales in 2021. Global market volatility and rising interest rates would have little impact on the buyers of such properties, he added.
“Now is already the bottom. These properties are exclusive. [House 6 at Twelve Peaks] is a very special case,” Lee said.
He compared the deal with the occasion when comic artist Ma Wing-shing bought a luxury house at Severn 8 on The Peak for the shockingly low price of HK$76 million straight after the 2008 financial crisis.