Hong Kong mall operator Lifestyle seeks up to HK$8 billion loan
HONG Kong mall operator Lifestyle International Holdings is in talks with banks to refinance a loan that backs a landmark retail project at a mega development covering the city’s former airport, according to sources familiar with the matter.
The syndicated loan, if signed, would be in the HK$7 billion (S$1.2 billion) to HK$8 billion range, the sources said, asking not to be identified because the information is private.
Details are still under discussion and subject to change.
The loan it would refinance is a HK$6.95 billion, two-year syndicated facility signed in June 2022 for Lifestyle’s project in Kai Tak, an area set against Victoria Harbour where other developments include a sports park.
Originally planned for opening two years ago, Lifestyle’s flagship department store The Twins at the eastern Kowloon area of Kai Tak has faced delays.
In January, the company denied speculation on social media about plans for Kai Tak Sogo store, one of the two towers at The Twins that is scheduled to open by year-end.
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Lifestyle International did not immediately respond to an inquiry submitted through their website, and phone calls to Hong Kong’s Sogo department stores went unanswered.
Lifestyle International was taken private by its chairman in a HK$1.9 billion deal, after warning the profit would drop at least 80 per cent in the first half of 2022.
Its last interim report showed that consolidated current liabilities exceeded current assets by about HK$2 billion.
The company has about US$1.2 billion in loans and bonds due in 2024, according to Bloomberg data.
Hong Kong’s retail sector has faced headwinds. Departures of locals and expatriates coupled with a new trend of shopping across the border in Shenzhen has put pressure on local retailers and residents’ spending power in recent months.
Retail sales could fall 4 per cent this year despite the city attracting more mainland China tourists, according to estimates by Bloomberg Intelligence.
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