Chow Tai Fook turns from tenant to owner with Hong Kong school property deal

Chow Tai Fook Enterprises, the private investment vehicle of Hong Kong property tycoon Henry Cheng Kar-shun’s family, and related parties, has acquired a Taikoo Shing school campus from Swire Properties in a deal estimated at about HK$400 million (US$51 million), which analysts described as a bet on long-term demand for international schools in the city. The deal – nearly doubling the property’s valuation from an internal transfer in late 2023 at HK$213 million – marks a change from leasing to owner-occupation as the campus is home to DSC International School, which is operated by CTF Education Group, an education arm linked to Chow Tai Fook interests. The premises at 5-7 Tai Fung Avenue comprise the ground floor to the fourth floor of Kam Shan Mansion on Kao Shan Terrace. The property covers about 146,000 sq ft with about 80 classrooms, sports grounds and other school facilities. “The biggest incentive for schools to buy instead of rent is stability,” said Oscar Chan, head of capital markets at JLL in Hong Kong. “If a lease expires and the school has to relocate, it is disruptive for students and parents.” The acquisition comes as demand for international school places and student accommodation gains momentum amid government efforts to attract skilled migrants and overseas students through various talent admission schemes. “With reasonable prices, end users are now willing to buy suitable premises as they are confident in the long-term outlook for Hong Kong’s international school sector,” Chan said. The transaction was structured as a company share transfer. According to Land Registry and Companies Registry filings, Keen Elite Group, the company holding the property, changed its directors on April 15. Newly appointed directors included Brian Cheng Chi-ming, the second son of Henry Cheng and co-CEO of CTF Services, formerly known as NWS Holdings, as well as Christopher Cheng Chi-leong, the third son of Henry Cheng and co-CEO of Chow Tai Fook Enterprises. On the same day, several directors linked to Swire Properties ceased to act as directors of the company, including chief financial officer Fanny Lung Ngan-yee and retail director Han Zhi. Chinese media, citing market sources, said the total consideration was about HK$400 million. In a reply to the South China Morning Post, a spokesman for Swire Properties confirmed the school premises were “no longer owned” by the company, but declined to comment further due to confidentiality obligations. CTF Education Group did not respond to queries before publication, and Chow Tai Fook Enterprises did not comment. CTF Education Group was established in 2017 within the family office of Chow Tai Fook Enterprises. The site has been used for educational purposes since the 1980s, when it housed the Delia School of Canada, before later becoming home to DSC International School. The campus was internally transferred among Swire-related entities in late 2023 for about HK$213 million, according to Land Registry filings. The disposal is the latest in a series of asset sales by Swire Properties in the Taikoo Shing area as the developer streamlines its portfolio and monetises non-core assets, including parking spaces and several office properties in the district.