The planned sale of a $ 332 million Hong Kong exclusive property by the US government has been questioned by the Chinese government, which has determined that the transaction requires its approval and approval.
In September, the US reached a deal to sell a consulate-staff housing complex to Hang Lung Properties Ltd., a Hong Kong real estate developer. The quaint property, in an upscale neighborhood called Shouson Hill, includes six low-rise buildings with 26 apartments and a rooftop pool.
A representative from the US consulate in Hong Kong said earlier that the sale of the Shouson Hill compound was purely the result of a business decision taken as part of a global reinvestment program by the State Department.
The deal did not close as planned on December 30. On Wednesday, Hang Lung said last week that it was informed by the Hong Kong Land Registry Office that the sale cannot be completed without written approval from the Chinese government.
The fact that China imposed a national security law on Hong Kong this year has sparked tensions between Washington and Beijing. In recent months, the Trump administration has imposed sanctions against senior government officials in China and Hong Kong for actions that the US believes have eroded Hong Kong’s autonomy.
A Dec. 21 letter from the Land Registry stated that the US Consulate General in Hong Kong “is not a commercial entity and the property is not ordinary property,” the developer said in a regulatory filing.
It added that the sale of the compound “concerns foreign affairs between the People’s Republic of China and the US and should not be considered a normal commercial activity.”
The letter stated that the central government of China had notified the Hong Kong government that the US must submit a written application at least 60 days before renting, buying or selling real estate in the city. It also said the US requires written approval from the central government before proceeding with any transaction.
The US has disputed the need to meet these requirements, but agreed that this is a transaction involving foreign affairs and diplomatic affairs, Hang Lung’s filing said.
On Wednesday, a spokesperson for the US consulate in Hong Kong said, “Additional time is needed for the buyer and seller to complete the administrative processes required to close the property.”
The State Department “is not free to comment on the specific terms of pending contractual transactions,” he added.
Shouson Hill ownership was originally acquired by the US government in 1948, when Hong Kong was under British rule. Hang Lung hoped to redevelop the 94,796-square-meter site into luxury detached houses.
Write to Chong Koh Ping at [email protected]
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