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China Evergrande chairman's Hong Kong mansion seized by bank

Published 11/02/2022, 11:28 PM
Updated 11/03/2022, 05:22 AM
© Reuters. FILE PHOTO: China Evergrande Group Chairman Hui Ka Yan attends a news conference on the property developer's annual results in Hong Kong, China March 28, 2017. REUTERS/Bobby Yip
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HONG KONG (Reuters) -A mansion belonging to embattled China Evergrande Group's chairman in Hong Kong's prestigious The Peak residential enclave has been seized by lender China Construction Bank (OTC:CICHF) (Asia), records from the Land Registry show.

The bank appointed receivers to take over the 5,000 sq ft (465 sq m) mansion on Nov. 1, according to a filing.

Evergrande declined comment and chairman Hui Ka Yan could not be reached. CCB (Asia) did not respond to a request for comment.

Saddled with more than $300 billion in total liabilities, the defaulted Chinese property developer has already seen many of its assets, both in mainland China and Hong Kong, seized by creditors.

Online news outlet HK01 first reported the foreclosure of the luxury house on Thursday, which it said was now worth HK$700 million ($89 million). The report added it could be the first known case of Hui's personal assets in Hong Kong being seized.

The mansion, with sweeping views of the city's gleaming skyscrapers, had been pledged to raise about HK$300 million to repay an overdue Evergrande bond, HK01 reported last year.

A filing with Hong Kong's Land Registry confirmed in October 2021 that the property had been pledged for a loan from CCB (Asia), although it gave no monetary figure.

Hui owns two other luxury homes in the same development in The Peak, which were pledged to Orix (NYSE:IX) Asia Capital Ltd in November 2021 for undisclosed amounts, according to the Land Registry.

The latest records show the two properties have not yet been seized.

Evergrande's main assets in Hong Kong - its headquarters and a vast plot of rural land - were seized by creditors this year.

© Reuters. FILE PHOTO: China Evergrande Group Chairman Hui Ka Yan attends a news conference on the property developer's annual results in Hong Kong, China March 28, 2017. REUTERS/Bobby Yip

Chinese state-owned China Citic Bank Corp Ltd, lender to the office tower, took over the asset in September, and put it on a tender sale last month, while U.S. asset manager Oaktree Capital Management seized the land in Yuen Long district early this year.

($1 = 7.8498 Hong Kong dollars)

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