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China has stopped the sale of the US consulate staff complex in Hong Kong, citing Washington’s failure to get Beijing’s approval for the $ 332 million deal.
Hang Lung Properties Ltd., which agreed in September to pay HK $ 2.57 billion ($ 332 million) for the site, said Wednesday that it was unable to complete the purchase. The Hong Kong Land Registry informed the developer that the sale involves foreign affairs between China and the US and cannot be considered as an ordinary business transaction, Hang Lung said on a stock exchange. presentation.
China’s Foreign Ministry said that any real estate transaction involving US embassies and consulates in China, including Hong Kong, requires a written request to the government. “Only after obtaining written approval can they proceed with the relevant procedures,” ministry spokesman Wang Wenbin said at a briefing in Beijing on Wednesday.
The US government must make such a request at least 60 days before any intended deal. The Land Registry has not received such documentation and cannot register the sale, Hang Lung said. It was not immediately clear how long the requirement had been in effect or how widely it applied.
The move comes at a time of frayed ties between China and the United States, with the Trump administration criticizing Beijing’s efforts to clamp down on dissent in the Asian financial center and imposing sanctions on top officials like CEO Carrie Lam. Beijing has accused the Hong Kong consulate of interfering in the country’s internal affairs, part of an unprecedented tit-for-tat this year that saw both sides close consulates and topple diplomats.
Wednesday, China sentenced 10 Hong Kong activists who made a dramatic attempt to flee by boat to up to three years in prison, defying calls from the United States and other countries for their release.
More time
Hang Lung said he was not aware of China’s approval requirement at the time of the sale and is “evaluating and receiving legal advice on various actions,” including exploring the feasibility of extending the time to complete the transaction.
A spokesman for the US consulate said that “additional time is needed for the buyer and seller to complete the necessary administrative processes for the closing of the property.”
The complex at Shouson Hill, on the south side of Hong Kong Island, comprises six low-density apartment buildings spread over nearly 95,000 square feet (8,825 square meters) and offers ocean views over Deep Water Bay. Hang Lung planned to invest another $ 4 billion on the site to develop luxury single-family homes.
Shouson Hill is one of the most exclusive neighborhoods in Hong Kong where some of the wealthiest tycoons in the city, including Li Ka-Shing, own houses. The United States government purchased the property in 1948, records filed with the Land Registry show.
– With the assistance of Lucille Liu
(Updates with comments from the Chinese Ministry of Foreign Affairs in the third paragraph)
