Hong Kong Peak Mansion Sold at 30% Discount for $107 Million

A Chinese billionaire snapped up a luxury property on Hong Kong’s Victoria Peak for a discount of more than 30%، seizing an opportunity amid the city’s unprecedented real estate downturn. 

The mansion at 25-26 A&B، Lugard Road was sold for HK$838 million ($107 million)، according to Savills Plc، which brokered the deal. That compares with an asking price of HK$1.3 billion as of October. 

The sale is linked to Shenzhen billionaire Xu Hang، through a company set up in December by a director who shares the same name as his wife، according to Hong Kong’s land registry and companies registry. Xu is the co-founder of Shenzhen Mindray Bio-Medical Electronics Co.، a medical-equipment maker whose shares surged during the pandemic as demand for ventilators jumped. Xu، a Hong Kong citizen، has a net worth of about $12 billion، according to the Bloomberg Billionaires Index.

Making money in the toy industry

The seller is Tsim Wing Kong، a local businessman who made his money in the toy industry. He purchased the property in 1999 for HK$150 million.

The mansion has a maximum gross floor area of around 11،687 square feet (1،086 square meters) and offers unobstructed views of Victoria Harbour. 

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Buyers remain cautious due to concerns about the global economy، Savills’ Greater China Chief Executive Officer Raymond Lee said in a press release. At the same time، the transaction shows how it’s also a “golden opportunity” to acquire top-quality properties، he said. 

Luxury assets have not been spared in Hong Kong’s prolonged property downturn، recording a 4.1% decline in the second half of last year. It’s forecast to drop another 5% this year، according to Jones Lang LaSalle Inc. Demand from mainland Chinese buyers is limited، and will be primarily focused on the luxury market، the real estate consultancy said in its year-end property report. 

Xu represents a new type of Chinese entrepreneur that’s benefited from opportunities during the pandemic and the demand for bio-pharmacy products and services. Xu graduated from Tsinghua University with a bachelors degree in computer science and a masters degree in electrical engineering، according to a regulatory filing. 

He is also the chairman of Shenzhen Parkland Group Co.، a private conglomerate that includes real estate development، property management and private equity، according to the company website. Xu’s wife is the vice-chairman of a charitable foundation under Parkland Group.