Hong Kong billionaire and property investor Stephen Hung has suffered a reversal of fortune and is now in desperate need of cash, with his total debt ballooning to HK$4.5 billion (RM2.43 billion).
The flamboyant 58-year-old former banker made headlines in 2013 when he launched a 22-storey super luxurious hotel in Macau’s Cotai Coast known as The 13 that will also operate as a casino.
The US$1.6 billion property is supposed to feature 200 “all-villa” rooms and a 1,858 sqm top suite costing US$130,000 per night. It will also come about 66 gambling tables, where clients need to make a minimum bet of US$650 (RM2,727).
In 2016, when he was asked about the secret of his success, Hung proudly declared that “there is no such thing as luck. If you’re not willing to commit, then don’t even think of starting.”
But perhaps Lady Fortune has been put-off by his arrogance, as Hung’s company developing the hotel, The 13 Holdings Limited, has liabilities of more than HK$300 million (RM161.9 million) as of 31 March 2017.
The firm had required a capital injection of HK$951 million (RM511 million) to complete the posh property. But due to lack of funds, it was forced to dispose of a 52 percent stake in its subsidiary Paul Y. Engineering Group to business partner Charles Chan for only HK$300 million, translating to a huge discount of 35 percent.
Worse, 13 Holdings’ stock price slumped by more 90 percent from its peak in 2014 to HK$0.88 apiece, and its unfinished hotel still doesn’t have a casino licence.
Even if the company manages to open the hotel and secure a deal with one of Macau’s six casino concessionaires, the high-net worth individuals targeted by Hung are already shunning gambling tables in light of Beijing’s crackdown on corruption.
Another sign of Hung’s desperation for cash is that he has pledged all of his 30 bespoke Rolls-Royce Phantoms to creditors. Three years ago he had set a record for purchasing the biggest fleet of this luxury cars for a total of US$20 million.
Image sourced from Malaysia Chronicle.
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.
