Evergrande chief’s luxury assets in focus as his company scrambles to pay debts

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HONG KONG, Nov 16 (Businesshala) – As developer China Evergrande Group scrambles to meet its debt obligations, its founders are freeing up money from luxury properties including art, calligraphy and two high-end homes, filings and knowledge said. Case according to the person.

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Chinese officials have asked 63-year-old Evergrande president Hui Ka Yan to use some of his personal money to help pay bondholders, two separate people with knowledge of the matter told Businesshala last month. .

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Evergrande’s troubles meeting bond repayments have rattled markets here and left many of its investors, creditors and suppliers in financial chaos.

Guo Hui, whose cleaning business is owed more than 18 million yuan ($2.8 million) by Evergrande, had to sell her Porsche Cayenne and an apartment here to raise cash and pay off debt.

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“He must sell his things,” Guo told Businesshala. “They had no choice after the authorities made it.”

Hui mortgaged a Hong Kong mansion of about 5,000 square feet in Hong Kong’s most prestigious residential enclave, The Peak, for a loan from China Construction Bank in October, according to a filing with the Hong Kong Land Registry.

About HK$300 million was raised to pay off an overdue Evergrande bond, local media reported.

The tycoon, ranked as Asia’s richest person in 2017, mortgaged a second luxury home on The Peak to Oryx Asia Capital Ltd for an undisclosed amount on November 8, according to the Land Registry.

An estate agent told Businesshala that the property is worth around HK$800 million, with sweeping views of the city’s gleaming skyscrapers.

Hui and Evergrande did not respond to requests for comment regarding properties on The Peak.

China’s State Council Information Office did not immediately respond to a request for comment.

luxury assets

Raised here by her grandmother in a rural village, Hui founded Evergrande in southern Guangzhou City in 1996, supplying low-cost homes and building a fortune.

He developed a passion for calligraphy, the arts and the koi carp – the fish was seen as a symbol of good luck and fortune, for which he paid tens of millions of yuan, according to a source with direct knowledge of the matter.

Under Hui’s orders, Evergrande is selling some of the art and calligraphy to raise new capital, the source said. declined to name the source due to the sensitivity of the situation.

Businesshala could not immediately determine how much was raised by selling the artifacts or what the money was used for.

Evergrande did not respond to a request for comment regarding the art sale.

The source also said that Evergrande sold two Gulfstream jets in recent weeks.

The Wall Street Journal reported earlier this month that Evergrande raised more than $50 million by selling two of its private jets to American plane investors.

According to Chinese media reports, Hui also owns a 60-metre yacht called “Event”, worth $60 million, as well as a private Airbus jet.

Businesshala could not independently confirm the ownership of Hui’s yacht and private jet.

Hui and Evergrande did not respond to requests for comment about their aircraft, yacht and other assets.

According to the Hurun China Rich List 2021 released last month, while Hui’s net worth has fallen from about $45 billion in 2017, he is still estimated to be here at $11.3 billion.

But as he proceeds to sell some of his personal assets, the proceeds exceed Evergrande’s liabilities here at more than $300 billion, roughly equal to South Africa’s GDP.

Here again after Evergrande last week averted a volatile default with last-minute bond payments of the K%20wider%20property%20 sector, its next deadline is December 28, with coupon payments totaling more than $255 million. . ($1 = 6.3807 Chinese Yuan Renminbi) (Additional reporting by Sarah Cheng in Hong Kong and David Kirton in Shenzhen; Writing by Anne Marie Rontry; Editing by Lincoln Feast.)

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