Real estate developers could have a financial windfall after their skyscraper goes up in flames Hong Kong.
The 42-story Kimpton Hotel project, now ravaged by the disastrous fire, was to boast 500 rooms on 340,000 square feet of interior space.
The luxury skyscraper was almost fully built when it went up in flames early Friday in Tsim Sha Tsui. The cause is currently under investigation.
A HUGE FIRE IN HONG KONG CONSUMES A SKYSCRAPER UNDER CONSTRUCTION, RAINING EMBERS ON THE STREET
A skyscraper under construction is seen after a fire was put out in Tsim Sha Tsui in Hong Kong on March 3, 2023. (REUTERS/Tyrone Siu)
A skyscraper under construction is seen after a fire was put out in Tsim Sha Tsui in Hong Kong on March 3, 2023. (REUTERS/Tyrone Siu)
A fire burns in a skyscraper under construction in Hong Kong’s Tsim Sha Tsui district on March 3, 2023. (PETER PARKS/AFP via Getty Images)
The compensation from the insurance company is likely to be record-breaking due to the “contractors’ full risk” policy purchased for the project, according to the South China Morning Post.
“Usually, contractors’ risk coverage only pays around HK$20 million or so,” Legislative Council finance committee chairman Chan Kin-por said on Friday.
Chan continued, “The compensation amount will be large because the building is almost completed, as the amount will be paid to rebuild the completed part. The later the damage occurs during the construction period, the greater the sum that will have to be paid.” be paid”.
13 ADMITTED TO HOSPITAL AFTER FIRE AT WORLD TRADE CENTER IN HONG KONG
A fire burns in a skyscraper under construction in Hong Kong’s Tsim Sha Tsui district on March 3, 2023. (PETER PARKS/AFP via Getty Images)
Chan estimated that the insurance claim could reach compensation of between $25 million and $500 million.
The Kimpton was under construction on the site of the historic Hong Kong Mariners’ Club. The former club building was demolished prior to the project and the club intended to move into the new property.
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People watch as a fire burns in a skyscraper under construction in Hong Kong’s Tsim Sha Tsui district on March 3, 2023. (PETER PARKS/AFP via Getty Images)
The widely reported fire broke out after midnight – burning embers and debris rained on the streets below as firefighters attempted to control the inferno.
Photos and videos from the scene show the skyscraper engulfed in flames and the sound of explosions from inside the structure have been reported.
