According to land registry records, lender China Construction Bank (Asia) has seized the property of the chairman of the troubled China Evergrande Group’s property in Hong Kong’s exclusive ‘The Peak’ neighbourhood.
The bank appointed receivers to take control of the 5,000-square-foot (465 square metres) property on November 1.
Chairman Hui Ka Yan of Evergrande declined to comment, and was not reachable. When contacted for comment, CCB (Asia) remained silent.
The failed Chinese property developer has already had many of its assets in mainland China and Hong Kong seized by creditors due to its burdensome total obligations of more than $300 billion.
The opulent home’s foreclosure was first reported by online news source HK01 on Thursday. According to the publication, the home is currently valued at HK$700 million ($89 million). According to the report, this may be the first instance in which Hui’s personal property in Hong Kong has been taken.
According to HK01’s story from last year, the property, which boasts expansive vistas of the city’s shining skyscrapers, had been committed to raising roughly HK$300 million to pay back an overdue Evergrande bond.
Although it did not specify a dollar amount, a document with Hong Kong’s Land Registry in October 2021 indicated that the property had been pledged for a loan from CCB (Asia).
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According to the Land Registry, Hui owns two other mansions in the same neighbourhood of The Peak that were pledged to Orix Asia Capital Ltd in November 2021 for an undisclosed sum.
The latest records show the two properties have not yet been seized.
This year, creditors seized the two largest pieces of land and Evergrande’s headquarters in Hong Kong.
While US asset firm Oaktree Capital Management acquired the land in Yuen Long district earlier this year, Chinese state-owned China Citic Bank Corp Ltd, a lender to the office tower, gained control of the asset in September and placed it up for auction last month.
(with inputs from agencies)
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