A creditor has seized two Hong Kong luxury properties valued at more than HK$1.5 billion (US$192.3 million) owned by a company connected to a top China Evergrande executive, weeks before the next winding-up hearing against mainland China’s most indebted developer.
Orix Asia Capital has appointed receivers for the adjacent homes, according to filings with the Land Registry on Tuesday. The properties, 10C and 10E on Black’s Link, The Peak, are linked to the troubled Chinese tycoon Hui Ka-yan through his associate Tan Haijun, who is listed as a director of the company that holds the houses.
Tan is the director of Giant Hill, which owns the two mansions, according to Land Registry data. Hui, Evergrande’s founder and chairman, resigned as director of Giant Hill on July 30, 2021, with Tan appointed director on the same day.
Cosimo Borrelli and Tang Tak Yeung are the receivers for one of the houses.
The properties, valued at more than HK$1.5 billion, will be formally seized within days, according to media reports on Wednesday.
Evergrande declined to comment, saying it was a personal matter.
Justice Linda Chan granted the Guangzhou-based developer five weeks to get its house in order and stave off liquidation, with a warning that the court was “highly likely” to grant a winding-up order if no restructuring plan was ready by then.
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Justice Chan said the “final adjournment” would give more time for Evergrande to cobble together a deal that would offer higher returns to creditors than in the case of liquidation. She added that the developer had consumed too much time over the past 17 months on its negotiations with creditors.
The mansion in March was valued at more than HK$800 million, given comparable properties on The Peak were fetching HK$140,000 to HK$150,000 per square foot, a source familiar with the sale process said.
Centaline Property Agency and CBRE were appointed as sole co-agents to sell the ultra-luxury property.
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The mansion was owned by Better Vision, whose director is also Tan, according to the Companies Registry.
Three adjoining mansions of up to 5,400 sq ft each at 10 Black’s Link were remortgaged in late 2021 for HK$1.1 billion.
Hui, once China’s richest person, has seen his personal wealth dwindle since the developer was enmeshed in a debt crisis triggered by Beijing’s “three red lines” measure in August 2020 to curb leverage in the property industry.
Hui is currently detained by Chinese authorities on suspicion of economic crimes.
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