London Daily

Focus on the big picture.
Friday, Jun 20, 2025

Hong Kong Family’s $3 Billion Buyout Windfall Keeps Paying Off

Hong Kong Family’s $3 Billion Buyout Windfall Keeps Paying Off

Nine months ago, Douglas Woo sparked a $3.2 billion overnight surge in his family’s wealth by unveiling plans to take the centerpiece of their Hong Kong property empire private.

The biggest decision of the 42-year-old scion’s career is now looking savvier than ever.

Woo’s buyout of Wheelock & Co. not only lifted the valuation of a company that had long been saddled with a conglomerate discount, it also shifted the clan’s holdings toward the resilient residential real estate sector. The buyout was funded in part by family stakes in companies with exposure to retail and commercial properties, which have suffered far more from the pandemic and Hong Kong’s anti-government protests.


Douglas Woo


It may be the start of a broader push by Woo to re-orient his family’s fortune, according to Peng Qian, an associate director of the Tanoto Center for Asian Family Business and Entrepreneurship Studies at the Hong Kong University of Science and Technology. The family’s net worth was valued at $20.2 billion in this year’s Bloomberg Billionaires Index list of Asia’s richest dynasties, up $3.5 billion from a July 2019 ranking.

“The privatization will help the family restructure their businesses and diversify into different assets in the future,” said Peng, who speaks with Woo at family-office events in Hong Kong, though isn’t privy to any specific plans for Wheelock.

While few expect the Woos to end their focus on the world’s priciest real estate market, the buyout has made it easier to tweak the business by freeing the family from scrutiny of minority shareholders. It’s one of at least $26 billion in privatization transactions announced by controlling families and other related parties globally this year.

It wouldn’t be the first time Woo’s clan has pursued a strategic shift. His maternal grandfather, Pao Yue-kong, made his first fortune in the shipping industry. Known as the “Ship King” in Hong Kong, he once controlled the world’s largest independently owned bulk-shipping fleet.


Pao Yue-kong, right, with Li Ka-shing in 1985.


Pao made the leap to property in the late 1970s by buying a 10% stake in Hongkong and Kowloon Wharf and Godown Co. from Li Ka-shing, now the city’s richest man. Woo’s father, Peter, who is married to Pao’s second daughter, eventually took over. He handed the reins to Douglas, a Princeton and UBS Group AG alum, in 2014.

“The family has shown a strong ability to adapt to global trends,” said Hao Gao, director of Tsinghua University’s NIFR Global Family Business Research Center.

Unlike his father, who unsuccessfully campaigned to become Hong Kong’s first chief executive right before the city’s 1997 handover to China from Britain, the younger Woo has shunned publicity. He’s never given a media interview outside usual appearances at company news conferences. A press representative declined to comment for this story.

Woo’s low profile hasn’t stopped him from making a big mark on the family business. The take-private deal, which offered a 52% premium and triggered a 40% surge in Wheelock’s stock the day it was announced, looks particularly well-timed in hindsight, said Patrick Wong, an analyst at Bloomberg Intelligence.


The new extension building of the Ocean Terminal at Harbour City in Tsim Sha Tsui. The average retail occupancy rate dropped to 90% in the first half of the year from 97% at the end of 2019.


It was financed with a mix of cash and some Wheelock shares in two other listed units that focus primarily on retail and office properties. After the buyout, Wheelock’s stakes in those businesses -- Wharf Holdings Ltd. and Wharf Real Estate Investment Co. –- dropped to around 50% from 70%.

Wheelock’s other holdings are comprised mostly of residential developments and land. The family ended up paying about HK$8 billion ($1 billion) in cash to get full ownership of residential land banks that could be worth HK$100 billion, Wong said.

Hong Kong’s residential property market has remained remarkably resilient this year. Prices for homes have edged up slightly, while those for offices and retail space have dropped more than 6% and 2%, respectively, according to the latest available data from the city’s Rating and Valuation Department.

Skeptics say it’s only a matter of time before the housing prices tumble, given that Hong Kong is mired in its deepest-ever recession and a growing number of residents is looking to escape China’s tightening grip on the city.

Still, Wheelock and plenty of other market insiders have expressed optimism about the long-term outlook. One potential catalyst for further gains: China’s plan to make Hong Kong a pivotal piece of the Greater Bay Area project -- an attempt to build a Silicon Valley-like cluster of technology and financial hubs along the country’s southern coast.


The Kai Tak development site. Luxury residences in the area could fetch more than $3,200 per square foot.


Wheelock has the second-largest residential land bank in Hong Kong, trailing only Sun Hung Kai Properties Ltd. The former’s luxury residences in Kai Tak, a new development on the site of the city’s old airport, could fetch about HK$25,000 a square foot, according to Bloomberg Intelligence. That’s 60% more than the average in Hong Kong and triple the mean in Paris, data compiled by CBRE Group Inc. show.

Kai Tak is where Wheelock will focus in the future, according to a company presentation in March. It has acquired five sites there, including a HK$6.9 billion parcel in February 2019 from debt-laden conglomerate HNA Group Co., to build luxury homes next to the city’s planned second business district. The developer launched its first project in the area last year and has seven others under construction.

“The new structure offers flexibility for the Woos,” said Jeremy Cheng, a researcher at the Center for Family Business of the Chinese University of Hong Kong. “The prior social movement and the current pandemic may have raised the tendency for them to conduct a more frequent set of reviews and strategic realignment. Families need to be more agile.”

Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×