Hong Kong’s shuttered Physical gym chain owner sells 4 flats at over 40% discount

Luk was only able to recover HK$29 million (US$3.7 million) in the fire sale, a collective discount of 43 per cent from the HK$50 million that he paid for the four units. The most recent transaction involved a 428 sq ft, one-bedroom unit on the 22nd floor that sold for HK$7.4 million, according to the Land Registry. The keys were handed over on Monday.

The purchase price was 45 per cent lower than the HK$13.5 million he paid for the unit in 2012. He bought a total of six units using a holding company in 2012 for HK$80 million and the remaining two flats are currently for sale at a reduced price, according to the agent responsible for the sale. The agent added that the owner would like to cash in quickly and was willing to slash prices.

Physical, owned by Luk and his wife, Ho Yuk-wah, closed in September after 38 years in business after the Mandatory Provident Fund Schemes Authority told the fitness chain to pay about HK$3 million that it owed in outstanding contributions for about 740 staff members. It said two months of pension payments and related surcharges were unpaid.