Evergrande boss loses two luxury houses on Peak

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Bloomberg and staff reporter

A creditor has seized a pair of luxury houses on The Peak connected to China Evergrande Group chairman Hui Ka-yan, the latest setback to the fallen property tycoon.

The creditor, Orix Asia Capital, appointed receivers for the adjacent homes, according to documents lodged with the Land Ministry.

The properties, 10C and 10E on Black’s Link, are related to Hui via his associate Tan Haijun, who is listed as a director of the companies holding the houses.

Hui has seen his wealth evaporate and his freedom curtailed as creditors look to salvage what is left of his property empire.

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 its economy.

The owner of the two mansions pledged the assets to Orix Asia for an HK$821 million mortgage loan in 2021, filings show.

Additionally, two offshore companies are providing guarantees. One of the guaranteeing companies has a connection with Ding Yumei, the “former spouse” of Hui.

The properties are valued at more than HK$1.5 billion. Cosimo Borrelli and Tang Tak Yeung are the receivers for one of the houses.

The larger 10E mansion is estimated to be worth around HK$700 to HK$800 million, reports said, and was previously rented out for HK$600,000 per month.

Another house on Black’s Link was taken by a bank last year. The creditor has been marketing the property for HK$880 million, but is struggling to find a buyer.

Evergrande 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 judge said not having a plan would “very likely” result in an asset-liquidation order.