Creditors have seized Schroders’ floors in the Harbourfront Landmark (Image: JLL)
Creditors have seized a set of three Kowloon commercial floors from Schroders Real Estate, marking the third time that banks’ have taken assets from the UK fund manager in just over a year.
Colliers and Savills were appointed joint agents by the receiver to market the third, fifth and six floors of the Harbourfront Landmark, a residential and commercial complex in Kowloon’s Hung Hom area, the property consultancies said in a release on Monday.
A Colliers spokesperson told Mingtiandi the property’s market valuation is around HK$550 million ($70.1 million), a 45 percent reduction from the property’s HK$1 billion valuation when JLL scheduled an auction on behalf of Schroders for March 2024, which was later called off.
The seizure of the Kowloon asset has surfaced after Schroders head of real estate for Asia Pacific, Junnosuke Ando having left the company last month after a tenure of less than a year, with creditors having now seized a number of Schroders real estate assets in Hong Kong.
Tenancy Troubles
The three contiguous storeys (with unlucky floor number four skipped as per local custom) at 11 Wan Hoi Street have a total gross floor area of 73,820 square feet (6,858 square metres) and are part of a commercial podium of the 2001-vintage development.
Schroders Asia Pacific real estate chairman Andrew Moore, (Image: Schroders)
With all three floors leased to Nord Anglia International School Hong Kong, the Colliers and Savills expect the property near Whampoa MTR station to appeal to both local and overseas investors seeking stable rental returns. “So far we see interest from family offices, fund houses, etc.,” said the Colliers spokesperson.
Pamfleet acquired the three floors from private investor Lam Chi-fung, also known as Hugo Lam, for HK$1.16 billion in 2018, before the local fund manager was acquired by Schroders in 2020.
However, the cash flow generated by the property fell short of expectations with former occupant Campfire closing down its location in Harbourfront Landmark in 2022, before the now defunct co-working operator’s co-founder Tse Yiu-sing was sentenced to 30 months in prison for fraud in late 2023.
The property stood vacant for an extended time until Schroders secured a 12-year lease from Nord Anglia International School for all three floors in September, according to Land Registry records.
Schroders had already been attempting to find a buyer for its Harbourfront Landmark floors in 2024, with Bloomberg reporting at the time that the fund manager had missed payment on a loan backed by the property.
A Schroders spokesperson confirmed to Mingtiandi that the property is in receivership, but declined to comment further.
Vincent Cheung, managing director of Hong Kong-based Vincorn Consulting and Appraisal Limited, estimates the value of the property at HK$532 million, or HK$7,200 per square foot, based on an estimated effective rent of HK$27 per square foot and a market yield of 4.5 percent. Cheung’s estimate of the property’s valuation is 54 percent less than what Pamfleet paid for the retail floors in 2018.
More Pamfleet Seizures
The Harbourfront Landmark floors are the latest assets from the former Pamfleet portfolio to have been seized by creditors as commercial real estate values have plummeted since Schroders’ acquisition of the company six years ago.
The Nate, a serviced apartment building with a retail podium in Tsim Sha Tsui, was the first asset to run into trouble. After Schroders had defaulted on a loan linked to that Nathan Road project, creditors seized the property last July and later sold it for HK$272 million – a more than 66 percent markdown from what Pamfleet and its partner in the project paid to acquire and later renovate the building.
In August last year creditors also seized the Worfu Mall in Hong Kong’s North Point area, after a joint venture between Schroders and UK investor Chelsfield defaulted on a roughly HK$1.5 billion loan earlier in 2025.