Puhua Yongdao said that Hong Kong's real estate market is sluggish and it is expected that banks will take over more debt buildings.
According to Bloomberg News on Wednesday (August 7), Pwa Yongdao partner Christopher SO made the above estimates.His team managed a real estate portfolio that valued more than HK $ 10 billion (S $ 1.7 billion) in the state of bankruptcy management.
Christopher So, who leads the reorganization and bankruptcy business in Pwa, said that lending institutions often give the borrower some breathing space at the beginning, but if there is no result of the negotiations, the bank may considerAdopting forced operations, "In the past six months to a year, many banks have incorporated mortgagers into bankruptcy management procedures."
Christopher So has not provided the number of such cases.The assets he are dealing with include Xiangqi Center, who once belonged to the rich Chinese Chen Hongtian, and the property of the Deng Chengbo family. The family operates hotels, shops and industrial buildings.
The bank designated the receiver to manage and sell such properties at the most suitable price.When can the receiver and what they can do are determined by the loan contract.As Hong Kong is facing a serious downturn in the field of commercial and residential real estate, this business is becoming more and more difficult to do.
According to the data of the Shibang Weishi Group, the vacancy rate of Hong Kong office buildings reached a historical high of 16.9%in the first half of this year, and the rent price is expected to decline by up to 10%this year.
