Oaktree Capital puts Hong Kong commercial building on the market
The sale comes at a tough time for commercial real estate in the city, with banks nursing losses from soured loans, office vacancies around a record high and big names facing difficult questions about liquidity
[HONG KONG] Oaktree Capital Management is looking for a buyer for a commercial building in Hong Kong’s Wan Chai district, after taking ownership of the property from real estate investor Kailong Group, according to sources familiar with the matter.
The fund is seeking a buyer for 303 Jaffe Road, a 25-storey building with retail and office space, the sources said.
The Jaffe Road property was registered to Ivan Ho, a senior adviser at Kailong Group, in 2023. But last year, ownership passed to a company called Kaiser 2000, which listed Oaktree executive Allan Wardrop as a director, public records show.
Oaktree had previously lent money to Kailong, the sources said. It was unclear what triggered the US firm’s takeover of the building, they added.
The sale comes at a tough time for commercial real estate in Hong Kong, with banks nursing losses from soured loans, office vacancies around a record high and big names such as New World Development facing difficult questions about liquidity.
Around HK$2.1 trillion was erased from commercial and residential real estate values in the city between 2019 and the middle of last year, according to research by Bloomberg Intelligence last year.
Colliers has been appointed as the sole agent by a creditor to sell the property, the firm said on Monday (Apr 7). It did not name the seller.
Oaktree declined to comment. Kailong did not respond to an e-mail seeking comment. BLOOMBERG
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