Caixin
Oct 30, 2021 06:52 PM
BUSINESS

Hong Kong Mansion Linked to HNA Group’s Dennis Chen Seized by Lender

HNA Group's headquarters in Haikou, Hainan, in October 2019. Photo: VCG
HNA Group's headquarters in Haikou, Hainan, in October 2019. Photo: VCG

A mountaintop mansion in Hong Kong linked to Dennis Chen — removed last month as HNA Group Co.’s investment chief — has become the latest luxury property linked to the group to be placed in foreclosure ahead of a possible sale.

House 6 on Twelve Peaks, a posh development on Hong Kong Island’s Victoria Peak, was seized by the lender on Oct. 15, records from the Land Registry of the Hong Kong SAR show.

Chen, who is also known as Chen Chao, was removed from his position as chief investment officer at the troubled HNA Group in September. His uncle, group chairman Chen Feng, was taken in by police that same month.

Fortune Runner Hong Kong Investments Ltd. purchased House 6 in 2015 for HKD $506 million ($65 million), or HKD $1.24 million per square meter. Dennis Chen is one of at least two former Fortune Runner directors with links to HNA. Both departed the firm on Oct. 25.

Fortune Runner is currently in receivership, meaning all of its properties face seizure by the courts and could be auctioned.

House 6 has been up for sale for HKD$510 million for some time. Properties in foreclosure may be given to surveyors for sale by tender or auction, or sold through real estate agencies, a realtor told Caixin, adding that luxury mansions sold under such circumstances often go for lower than market rates.

House 6 isn’t the first Hong Kong property with ties to HNA to be put into foreclosure since the conglomerate went into a government-led bankruptcy restructuring. A mansion linked to HNA Group Chairman Chen Feng was put out for tender (link in Chinese) in August and sold for almost 30% less than its purchase price.

Contact reporter Zhang Yukun (yukunzhang@caixin.com) and editor Flynn Murphy (flynnmurphy@caixin.com)

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