The Chinese investor that planned to take a 55% stake in the consortium buying The Center in Central, Hong Kong, for a record HK$40.2 billion has pulled out of the deal, Reuters reported, citing "two people with direct knowledge of the matter."
A shareholder of the C.H.M.T. Peaceful Development Asia Property Ltd. consortium, Lo Man Tuen, was also quoted as saying that Beijing-based China Energy Reserve & Chemicals Group Properties "has cut the stake." Lo also assured that the rest of the consortium members will be able to fund the transaction, according to Reuters.
China Energy Reserve's majority stake will, according to one of Reuters sources, will be taken up by other investors. Shimao Property Holdings Ltd. Chairman Hui Wing Mau plans to buy a 20% interest in C.H.M.T. Peaceful, while the remaining portion of the 55% stake will be distributed among other investors, including Kingston Financial Group Ltd. CEO Chu Yuet Wah.
CK Asset Holdings Ltd.'s The Center International Ltd. subsidiary agreed to sell its 75% stake in The Center to C.H.M.T. Peaceful in November 2017, a deal expected to be Hong Kong's largest-ever property transaction by deal value.
Reuters reported Feb. 27 that Shimao Property declined to comment, while representatives from China Energy Reserve, CK Asset and Kingston Financial were not able to immediately respond to its request for comments.