The China Evergrande Group’s (3333.HK) chairman, Hui Ka Yan, lost two of his luxury homes to a creditor. These were seized on Wednesday, according to the HK01 local media channel.
Creditor seizes two luxury homes of Evergrande chairman
Situated in The Peak, one of the most prestigious suburbs in Hong Kong, the properties have a collective value of more than HKD 1.5bn. Expected to take mansions over within the next few days, the unnamed creditor submitted the necessary documentation for the seizure on Tuesday.
Reportedly, Hui, who owns these luxury residential properties, pledged them as surety to Orix Asia Capital Ltd in November 2021. According to the Land Registry, the collateral amounts were not disclosed.
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Orix is a private equity investor and puts money into ventures such as real estate, renewable energy, and infrastructure. Reuters contacted both Orix and Evergrande for comments, but none of the parties responded.
Approximately a year ago, the China Construction Bank Corporation (0939.HK) seized another Hui property. The embattled Evergrande’s business headaches started back in August 2021, when the company halted construction operations due to overdue payments.
From missing two offshore bond coupon payments to the value of $131m in September 2021 to China’s National Administration of Financial Regulation giving the go-ahead for a state-owned insurer to take over all assets and liability of Evergrande Life Insurance in September 2023, the company faced one uphill battle after the next.
At the moment, Evergrande is fighting a winding-up petition. The organisation has until 4 December to reveal its tangible restructuring plans to avoid liquidation. Last year, creditors seized the Evergrande headquarters and a large chunk of rural land when the company failed to pay public debts.
