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Posts Tagged ‘record property price’


39 Conduit Road - Transparent or Not?

Monday, March 29th, 2010

Henderson Land announced in October 2009 that 24 flats at their newly developed residential site on 39 Conduit Road had just been sold and one of them for a record of over HK$ 70,000/sq. ft..

Until today 29 March, 2010 - only 1 of the 24 transactions have completed, the remainder are yet to be completed. The Development Bureau’s 25 March press release is as follows:-

With regard to the transactions of 24 units of “39 Conduit Road”, a
Government spokesman said today (March 25) that the Lands Department had
received the reply to its inquiries from companies of the Henderson Land
Development Co Ltd (the Companies) yesterday (March 24). “The Companies
replied that they had entered into a verbal agreement with the 24
purchasers to extend the completion of the sale and purchase for a period
of between two to four months, therefore no assignment had been executed or
delivered to the Land Registry for registration. Also, the Companies said
that the completion of the sales might be further extended,” the spokesman
said. “Given that the Companies had entered into new agreements with
the purchasers verbally and could not be definite about whether the
transactions could eventually be completed, the Lands Department issued
another letter to the Companies today (March 25) requesting further
information. “We will continue to closely monitor whether the
transactions will eventually be completed and whether there is any
anomaly.”

In normal sales and purchase of properties, the buyer and seller enter into agreement in writing and the buyer usually pays a deposit to guarantee the purchase and if the buyer fails to complete then he/she will forfeit the deposit paid and if the seller fails to complete then the seller has to return the deposit to the buyer and pay a compensation fee equivalent to the deposit. It is peculiar that no deposits have been forfeited for these transactions and furthermore the standard completion period is 2 months and it seems peculiar that Henderson should only negotiate the extension for completion when pressured by the government to provide answers 5 months after the buyers and Henderson Land entered into contract.

Moreover, it seems peculiar that all 24 buyers bought using British Virgin Island companies or other vehicles whose buyers cannot be looked up, so the identity of the buyers are to-date unknown.

Lastly, according to information from the Companies Registry, different shell companies were used to buy the 24 units. All of them used the same law firm, Lo & Lo Solicitors, also registered in the British Virgin Islands.

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