Bob Prince, the co-chief investment officer of the world's largest hedge fund, bought a luxury home in Hong Kong, joining an A-list of global financiers who have begun to heed the city government's serenade to put down roots in Asia's third-largest capital market.
The executive of Bridgewater Associates, which had US$235 billion of assets under management as of March 31, paid HK$95 million (US$12.2 million) for a three-bedroom flat measuring 1,752 sq ft (162.8 square metres) at St. George's Mansions on Kadoorie Avenue in Ho Man Tin.
The sale of the display unit, jointly developed by Sino Land and CLP Group, was transacted on July 23, according to Land Registry records.
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"It's a really nice neighbourhood," Prince said during a November 16 interview with the Post, without disclosing the price or location of his purchase. "The apartment we got was furnished, [because] there was no possibility from the United States that we would have been able to decorate it. They did a beautiful job, so we're fortunate."
The penthouse terrace at St George's Mansion. Photo: Handout alt=The penthouse terrace at St George's Mansion. Photo: Handout>
Kadoorie Hill in Ho Man Tin is one of the most expensive luxury residential lots in Kowloon, with low-density houses in the area. It is home to local celebrities like actor Andy Lau, Cantopop star Kelly Chen Wai-lam and Michelle Reis.
The purchase, which translated to HK$54,223 per square foot, was a bargain for Prince, underscoring how Hong Kong's property glut is presenting good deals for astute investors. The priciest unit in the 20-storey project sells for HK$71,471 per sq ft, agents said.
"The super luxury market will continue to be robust, with both price and volume rising," Sino's executive director Victor Tin said on Monday, noting that St. George's Mansion has sold 26 units valued at HK$1.7 billion in the month and half since interest rates started falling.
"Many buyers were from large families. The project also attracts top talents who enjoy its prestigious location in an elite school district. Among the recent transactions, there were five major deals that involved two or more purchases by the same buyer at a time."
Hong Kong's government unveiled a cash-for-residency programme to attract the well-heeled to set up their family offices in the city, offering fast track residency for at least HK$30 million of investment in local stocks or other assets.
Prince will spend more time - weeks at a time, rather than months, he said - in Hong Kong, underscoring his argument that China, and Hong Kong by extension, offers a unique diversification opportunity for wily investors.
The interior of a unit at St. George's Mansions. Photo: Sino Land alt=The interior of a unit at St. George's Mansions. Photo: Sino Land>
"We do business from the North to the South of Asia and we have long-term clients all along and Hong Kong is right in the middle. Everything is accessible from here."
He is not alone. Nicholas Moreau, the CEO of HSBC Global Asset Management - one of a handful of global executives transferred by the bank to Hong Kong in its Asia pivot - paid HK$50 million on October 23 for a luxury flat at Kerry Properties' Century Tower in Mid-Levels, according to government records.
St. George Mansions exterior. Photo: Sino Land alt=St. George Mansions exterior. Photo: Sino Land>
The day before that, the CEO of DBS Bank (Hong Kong) bought a three-bedroom unit at Kerry's The Aster in Happy Valley for HK$49.4 million, according to records.
Chris Gradel, the co-founder and CEO of the private-equity investment firm PAG, paid HK$550 million in May last year for the 100-year old waterfront Villa Ellenbud in Pok Fu Lam.
"People who understand Hong Kong property know there have been very very few bargains and very little value in this residential market for a long time," Gradel said in a separate discussion panel during the HKMA's conference.
"Property [prices] have come down a bit, [so] my wife and I, having lived here for 24 years, [felt it] probably was about time to actually buy something. So we took the plunge and bought a 100-year old property."
Villa Ellenbud, built in the 1920s, is a Grade III historic building. The 19,500 sq ft property with open seaviews and a garden includes two houses at No. 50 and No. 52 Sassoon Road. It can be redeveloped into two mansions with a total floor area of 14,625 sq ft, according to a press release from property consultancy Colliers, which was the sole agent for the property.
