Saturday, January 16, 2021
Home Business China Blocks U.S. Government’s $332 Million Sale of Hong Kong Luxury Apartments

China Blocks U.S. Government’s $332 Million Sale of Hong Kong Luxury Apartments


The U.S. government’s planned $332 million sale of an exclusive property in #Hong #Kong was thrown into doubt by the #Chinese government, which has determined that the transaction needs its approval.

#In #September, the U.S. reached a deal to sell a residential compound for consulate staff to

#Hang #Lung #Properties #Ltd.

- Advertisement -

, a #Hong #Kong real-estate developer. The scenic property, in a high-end neighborhood called #Shouson #Hill, includes six low-rise buildings with 26 apartments and a rooftop swimming pool.

A representative of the U.S. #Consulate in #Hong #Kong previously said the sale of the #Shouson #Hill compound was purely the result of a business decision, made as part of a global reinvestment program by the #State #Department.

The deal didn’t close on #Dec. 30 as scheduled. #On #Wednesday, #Hang #Lung said it was informed last week by #Hong #Kong’s #Land #Registry that the sale can’t be completed without the written consent of the #Chinese government.

#China’s imposition of a national-security law on #Hong #Kong this year has helped stoke tensions between #Washington and #Beijing. The #Trump administration in recent months has imposed sanctions on senior government officials in #China and #Hong #Kong for actions that the U.S. said have eroded #Hong #Kong’s autonomy.

A #Dec. 21 letter from the #Land #Registry stated that the U.S. #Consulate #General in #Hong #Kong “is not a commercial entity, and the #Property is not an ordinary real estate property,” the developer said in a regulatory filing.

#It added the sale of the compound “involves foreign affairs between The #People’s #Republic of #China and the U.S. and should not be regarded as an ordinary commercial activity.”

The letter said #China’s central government had advised #Hong #Kong’s government that the U.S. needs to make a written application at least 60 days before renting, buying or selling any property in the city. #It also said the U.S. needs written consent from the central government before proceeding with any transaction.

- Advertisement -

The U.S. has contested the necessity to comply with these requirements but agreed this is a transaction involving foreign affairs and diplomatic matters, according to #Hang #Lung’s filing.

#Chinese #Foreign #Ministry spokesman

#Wang #Wenbin

said on #Wednesday during a regular press briefing that #China’s requirement is “in accordance with the principle of reciprocity,” referring to U.S. regulations on the real-estate management of foreign embassies and consulates in #America.

#On #Wednesday, a spokesman for the U.S. #Consulate in #Hong #Kong said: “Additional time is needed for the buyer and seller to complete the administrative processes required for closing on the property.”

The #State #Department “is not at liberty to comment on the specific terms of ongoing contractual transactions,” he added.

- Advertisement -

The #Shouson #Hill property was acquired by the U.S. government in 1948, when #Hong #Kong was under #British rule. #Hang #Lung has hoped to redevelop the 94,796-square-foot site into luxury detached houses.

#Write to #Chong #Koh #Ping at [email protected]

#Copyright ©2020 #Dow #Jones & #Company, #Inc. #All #Rights #Reserved. 87990cbe856818d5eddac44c7b1cdeb8



[ source link ]
https://www.wsj.com/articles/china-blocks-u-s-governments-332-million-sale-of-hong-kong-luxury-apartments-11609323459

##China ##Blocks ##Governments ##Million ##Sale ##Hong ##Kong ##Luxury ##Apartments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments