Billionaire Edwin Leong Siu-hung, known as Hong Kong’s “king of shops,” has sold an apartment in a prime area for HKD323 million (US$41 million).
Land Registry records show that Leong, chairman of conglomerate Tai Hung Fai Enterprise Group, sold the four-bedroom apartment in the ultra-exclusive Mount Nicholson enclave on The Peak at HKD70,740 per square foot, according to South China Morning Post.
Properties on Mount Nicholson, Hong Kong. Photo by Wikipedia/Wpcpey |
He had acquired the property in 2016 for about HKD312 million. Although the selling price was about 3.5 times higher than the purchase price, stamp duty and transaction costs may have resulted in a loss.
Leong said the flat had been leased out but became vacant after the tenant moved out. “It’s better to sell as it’s difficult to find tenants now,” he said, noting that the rental yield was only 1% to 2%.
The buyer was Earthstone, whose director is Fu Songyang, a mainland entrepreneur and founder of Beijing-based luxury car dealer FFF-Automobile.
The agreement was signed on Feb. 11 and the transaction was completed on Wednesday, a day before a higher stamp duty rate on homes priced above HKD100 million came into force, allowing the buyer to avoid the increased 6.5% levy.
Leong earned the moniker “king of shops” from amassing an large portfolio of retail and commercial properties through his company Tai Hung Fai. He has a net worth of $2.3 billion, according to Forbes.
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