Banks Eye Seizing Control of Hong Kong's Worfu Mall Amid Loan Default
Banks are considering appointing a receiver for the Worfu mall in Hong Kong after a joint venture involving Schroders Capital and Chelsfield Asia Fund 1 defaulted on a loan. This move highlights the ongoing challenges in Hong Kong's commercial real estate sector.
Real EstateHong KongLoan DefaultCommercial PropertyReceivershipReal EstateAug 12, 2025
The creditors are looking to appoint a receiver for the Worfu mall, formerly known as Provident Square, located in Hong Kong’s North Point district. The mall served as collateral for a loan of about HK$1.5 billion ($190 million). The joint venture, owned by a consortium including Schroders Capital and Chelsfield Asia Fund 1, defaulted on this loan earlier this year. United Overseas Bank Ltd. was the majority lender of the facility.
The financial troubles of the joint venture highlight the challenges global investors face in Hong Kong’s commercial real estate sector. Weak property values mean that even global asset managers are under pressure on investments made during the market’s previous highs.
A spokesperson for Schroders stated that the firm is in discussions with banks to manage the assets and achieve the best possible outcome. Chelsfield Asia declined to comment, and UOB did not respond to a request for comment.
Chelsfield Asia Fund 1 partnered with real estate manager Pamfleet in 2018 to purchase the Worfu mall from Fortune REIT, a company backed by Hong Kong tycoon Li Ka Shing. The sale price was HK$2 billion ($255 million), which was 88% above an appraised value of HK$1.061 billion at the time. Pamfleet was acquired by Schroders Plc. in 2020.
In January, the Schroders-Chelsfield consortium attempted to sell the mall through a public tender, but no deal was reached. Another investment property in Schroders Capital’s portfolio, The Nate, a serviced apartment tower in the bustling tourist district of Tsim Sha Tsui, entered receivership last month, according to land registry records.
The ongoing issues in Hong Kong’s commercial real estate sector underscore the risks associated with high-value investments in a market experiencing significant fluctuations. Investors and lenders are closely monitoring the situation to assess the broader implications for the real estate market.
Frequently Asked Questions
What is the Worfu mall, and where is it located?
The Worfu mall, formerly known as Provident Square, is a shopping center located in Hong Kong’s North Point district.
Who are the key players involved in the joint venture that owns the Worfu mall?
The key players involved in the joint venture are Schroders Capital and Chelsfield Asia Fund 1.
How much was the loan that the joint venture defaulted on?
The joint venture defaulted on a loan of about HK$1.5 billion ($190 million).
What is the significance of the Worfu mall's sale price in 2018?
The Worfu mall was sold for HK$2 billion ($255 million) in 2018, which was 88% above its appraised value of HK$1.061 billion at the time.
What other property in Schroders Capital’s portfolio has entered receivership?
The Nate, a serviced apartment tower in Tsim Sha Tsui, entered receivership last month.
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