(Bloomberg) -- A mansion in Hong Kong’s Repulse Bay was sold for HK$160 million ($21 million), adding to a streak of distressed property disposals this year.
The sale of House 3 at the Beachfront in the luxury residential neighborhood was completed Tuesday, according to land registry records. The unit was used to back a HK$168 million loan taken out by Hong Kong firm Accufast Ltd. from moneylender Lei Shing Hong Credit Ltd., according to court documents. A lawsuit had been filed against the borrowers and those who provided personal guarantees, including Hong Kong businessman Hui King Chun.
The mansion had also been used as collateral against multiple loans in the past, Land Registry records show.
Hong Kong has seen the fire sale of a number of luxury homes used to secure loans. The owners of these assets typically struggled with high interest rates.
The city’s prolonged property downturn has made it difficult for these sellers to secure high prices. In Hui’s case, the transaction price will not cover the loan. Earlier this year, the debt-laden Ho Shung Pun family sold four mansions on the Peak for HK$1.1 billion.
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