The US government’s planned sale of $ 332 million of an exclusive property in Hong Kong was questioned by the Chinese government, which determined that the transaction needs its approval.
In September, the United States reached an agreement to sell a residential complex to consulate officials to Hang Lung Properties Ltd.
, a Hong Kong real estate developer. The panoramic property, in a sophisticated neighborhood called Shouson Hill, includes six low-rise buildings with 26 apartments and a rooftop pool.
A representative of the US Consulate in Hong Kong said earlier that the sale of the Shouson Hill complex was purely the result of a commercial decision, made as part of a State Department global reinvestment program.
The deal was not closed on December 30 as scheduled. On Wednesday, Hang Lung said he was informed last week by the Hong Kong Registry of Real Estate that the sale cannot be completed without the written consent of the Chinese government.
China’s imposition of a national security law in Hong Kong this year helped fuel tensions between Washington and Beijing. The Trump administration in recent months has imposed sanctions on top government officials in China and Hong Kong for actions that, according to the U.S., undermined Hong Kong’s autonomy.
A December 21 letter from the Registry of Real Estate stated that the United States Consulate General in Hong Kong “is not a commercial entity and the Property is not an ordinary real estate property,” said the developer in a regulatory document.
He added that the sale of the compound “involves foreign business between the People’s Republic of China and the United States and should not be considered a common commercial activity”.
The letter states that China’s central government has informed the Hong Kong government that the United States must make a written application at least 60 days before renting, buying or selling any property in the city. He also said that the US needs written consent from the central government before proceeding with any transactions.
The United States contested the need to comply with these requirements, but agreed that this is a transaction involving foreign affairs and diplomatic issues, according to the Hang Lung document.
Chinese Foreign Ministry spokesman Wang Wenbin said on Wednesday at a regular press conference that China’s demand is “in line with the principle of reciprocity”, referring to US regulations on real estate management of foreign embassies and consulates in America.
On Wednesday, a spokesman for the US Consulate in Hong Kong said, “It takes more time for the buyer and seller to complete the administrative processes needed to close the property.”
The State Department “is not at liberty to comment on the specific terms of ongoing contractual transactions,” he added.
Shouson Hill property was acquired by the US government in 1948, when Hong Kong was under British rule. Hang Lung hopes to rebuild the 94,796-square-foot site into luxurious detached villas.
Write to Chong Koh Ping at [email protected]
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