The mall was used as collateral by a joint venture backed by Schroders Capital and Chelsfield Asia’s fund
Bank creditors are considering seizing control of a Hong Kong shopping centre after a venture backed by Schroders Capital and Chelsfield’s Asia fund defaulted on a loan tied to the property, according to people familiar with the matter.
The creditors are looking to appoint a receiver for the Worfu mall, formerly known as Provident Square, in Hong Kong’s North Point district, said the people, asking not to be identified for discussing private matters.
The mall was used as collateral for the about HK$1.5 billion (US$190 million) loan that a joint venture owned by a consortium including Schroders Capital and Chelsfield Asia Fund 1 defaulted on earlier this year, the people added. United Overseas Bank was the majority lender of the facility.
The joint venture’s financial troubles underscore the challenges global investors still face in Hong Kong’s beleaguered commercial real estate sector. Weak property values mean that even global asset managers face pressures on investments made during the market’s previous highs.
