Cheung Kong's sales of Apex Horizon hotel suites cancelled over investment breach
Watchdog rules that deals for Cheung Kong's suites at prestigious Apex Horizon complex broke law, with 360 deposits to be refunded
Cheung Kong (Holdings) will refund deposits and cancel the sales of its hotel suites after a securities watchdog probe found the deals breached the law as unauthorised investments.
The sales drew scrutiny because the developer used a legal loophole to try to help buyers avoid paying a residential stamp duty that was aimed at cooling the property market but did not apply to hotel rooms.
However, avoiding the duty was not the reason regulators gave for blocking the deals.
The Securities and Futures Commission said an agreement had been reached with Cheung Kong to unwind the sales.
The developer will refund the deposit and any part payments together with interest at 2 per cent per annum above the prime rate from the time of the payment to the end of this month.
