Hong Kong developer Chinachem sues co-working operator Kr Space for failing to execute One Hennessy lease
- Beijing-based Kr Space says it is unaware of the legal action
- Chinachem is seeking 10 years’ rent, management and facilities fees and government taxes amounting to HK$500.9 million
Chinachem Group, the chemical producer-turned-property developer, has slapped a law suit on one of China’s biggest co-working space operators for reneging on a contract, according to a writ filed with the Hong Kong High Court.
The Hong Kong developer has sued Kr Space, a spin-off of technology platform 36kr.com, claiming HK$500.9 million (US$63.8 million) in damages for breaching a contract to take up seven floors at Chinachem’s One Hennessy building in Wan Chai, according to the writ.
Chinachem said it received emails on March 4 and 11 saying Kr Space would not go ahead with a five-year lease starting April 1, as stated in an agreement the two sides signed on April 30 last year.
“We are disappointed for sure, when such a situation happens to any of our tenants,” said Donald Choi, Chinachem’s chief executive.
“When Kr Space first came to Hong Kong, we especially organised a press conference for it, announcing the agreement of taking up space in One Hennessy, helping the company strengthen its presence here.”
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The compensation Chinachem is seeking includes 10 years’ rent at HK$7.4 million a month, plus management and facilities fees and government taxes. The lease contract Chinachem mentions in its writ also had an option for renewal for another five years.