Evergrande Chairman’s Luxury Hong Kong Mansions Seized by Creditor
In a recent development, a creditor has seized two luxury houses on Hong Kong’s Peak, which are connected to China Evergrande Group’s chairman Hui Ka Yan. The seizure marks another setback for the embattled property tycoon, whose wealth has evaporated and freedom has been curtailed as creditors attempt to salvage his property empire.
Orix Asia Capital’s Move
The creditor, Orix Asia Capital, appointed receivers for the adjacent homes, according to documents lodged with the Land Ministry. The properties, located at 10C and 10E on Black’s Link, are linked to Hui Ka Yan through his associate Tan Haijun, who is listed as a director of the companies holding the houses.
Evergrande, the world’s most indebted developer, is at the center of a credit crisis that has rippled through China’s real estate sector and slowed down the world’s second-largest economy. The owner of the two mansions pledged the assets to Orix Asia for a HK$821 million (S$141 million) mortgage loan in late 2021, as per filings.
Properties to be Formally Seized
The properties, valued at more than HK$1.5 billion, are expected to be formally seized within days, as reported by local media HK01. Hui Ka Yan had another house on Black’s Link taken by a bank last year. The creditor has been marketing the property overlooking Victoria Harbour for HK$880 million but is struggling to find a buyer in a weak real estate market.
Evergrande’s Debt Overhaul
Evergrande has been attempting to overhaul its debt since it defaulted two years ago. The developer has until December 4 to come up with a new restructuring proposal. That is when the next hearing on a winding-up petition is scheduled, and the case’s judge said that not having a plan would “very likely” result in an asset-liquidation order.
The seizure of these luxury mansions is yet another reminder of the challenges faced by Evergrande and its chairman. As the company struggles to restructure its debt and salvage its business, this development underscores the ongoing difficulties faced by the real estate sector in China.
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