Deposits from a Hong Kong developer have been forced to be returned.

 

After regulators expressed concerns about the program, Cheung Kong Holding, the development business controlled by billionaire Li Ka-Shing, is repaying deposits to customers in a Hong Kong hotel project. al aaliya island

According to Bloomberg, all 360 hotel rooms in the Apex Horizon project were sold in February for a total of HK$1.4 billion ($180 million).

However, the Securities and Futures Commission was looking into whether the transactions were an improper "collective investment scheme," according to a statement released by the developer to Hong Kong's stock exchange yesterday. According to reports, buyers in the hotel project were spared from recently implemented restrictions on residential property acquisitions, including a 15% tax on foreign buyers.

Cheung Kong responded in an emailed reply to Bloomberg that "we do not concur" with the SFC. The decision was made "because the difference in legal opinions may result in legal confusion in respect of the sale and purchase of hotel room units, which may impair the buyers' ownership, mortgage arrangement, or later sale of hotel room units," according to the business.

Chueng Kong stated that all deposits and payments would be refunded with interest.

The Apex Horizon rooms, according to Secretary of State Paul Chan, are not residential units and will not be subject to residential property limitations.

In February, Ricacorp Properties' Andy Jim told the Wall Street Journal that two-bedroom flats in the project started at $425,000, which he described as "a good value for the area." Buyers would be barred from redecorating or making other changes to the unit because it would be used as a hotel room. Room sizes ranged from 656 square feet to 909 square feet (61 square meters).

Mr. Jim told the Journal that "it's all investment," and that speculators were eager to take advantage of a low-cost opportunity.

However, it appears that government regulators disagreed with the hotel concept being sold.

In a note to clients reported by Bloomberg, Credit Suisse Group AG analysts Cusson Leung and Joyce Kwock wrote, "The government is definitely putting out a message that there's no place for playing about."