Schroders says Hung Hom asset loan extended

Two properties managed by Schroders' real estate investment division have been placed into receivership by their creditor banks, Bloomberg reported.

The latest asset involved – following earlier reports of the receivership of Worfu mall in North Point – is the commercial portion of the Harbourfront Landmark in Hung Hom, the report said.

Sources said that a loan tied to three commercial floors at the project had fallen into default. Bank of Communications (Hong Kong) is currently evaluating various options regarding the loan, including demanding immediate repayment and enforcement actions, though no final decision has been made yet.

The report indicates that these troubled assets were part of Schroders' acquisition of real estate fund management company Pamfleet in 2020. The acquired portfolio included The Nate serviced apartments in Tsim Sha Tsui, the Worfu mall, and the Harbourfront Landmark.

In response, Schroders denied that the loan associated with Harbourfront Landmark is "not in payment defualt" and has been extended, adding that it has secured a lease for all three floors of the property occupying about 73,800 square feet.

The company added that it remains in close contact with the bank and is not aware of any potential receivership situation.

In addition, Schroders said the Nate is progressing to a sale.

STAFF REPORTER