Lifestyle International Holdings Ltd, operator of the Sogo department stores in Hong Kong, is trying to refinance a HK$6.75 billion loan backed by its iconic Causeway Bay store, with about HK$2 billion in commitments yet to be secured [1, 2, 3].
Negotiations with banks have stretched over four months as the company works to close the shortfall that represents roughly one-third of the refinancing target [1, 2, 3]. The extended talks come amid lingering strains in Hong Kong’s commercial property market that continue to pressure borrowers [2, 3].
Hong Kong’s economy expanded at its fastest pace in nearly five years in the first quarter of 2026, driven by a rebound in residential housing, stronger tourism, and increased share listings [2, 3]. However, the commercial property sector remains under stress, impacting refinancing efforts for companies such as Lifestyle International.
Asia Standard Hotel Holdings, a Hong Kong hotel operator, is also facing refinancing challenges with a HK$1.36 billion loan due in the coming days [2, 3].
Lifestyle International’s chairman, Thomas Lau Luen-hung, said he plans to purchase the full principal of a US$350 million bond before its maturity on June 18, 2026. "I intend to purchase the full outstanding principal of a US$350 million bond before it matures on Jun 18," Lau said [2].
This planned bond buy has prompted some banks to reconsider their participation in the refinancing process [2, 3]. Meanwhile, Lifestyle International is also seeking new lenders to join the refinancing facility [2, 3].
The chairman’s planned bond purchase deadline on June 18 remains a key milestone in the company’s broader debt management efforts.
