China Evergrande chairman Hui Ka Yan has had a HK$700M ($89 million) mansion seized by creditors according to land registry records.
The 5,171 square foot property, which was owned by a company controlled by the property billionaire, was mortgaged in October last year as Evergrande’s chairman dipped into his personal fortune in an effort to pay down debt.
Failed Chinese property developer Evergrande has already had many of its assets in mainland China and Hong Kong seized by creditors as it struggles to pay debts of more than $300 billion.
Hong Kong news outlet HK01 first reported the foreclosure of the luxury house, which it said could be the first known case of Hui’s personal assets in Hong Kong being seized.
The seizure of the property came one day after a tender for the sale of Evergrande’s Hong Kong headquarters, which closed with no apparent result. A number of parties had expressed interest in taking ownership of the 26-storey Evergrande Centre, but seemingly held off on making a bid.
Hui also owns two further properties in the same development in The Peak, which were pledged to Orix Asia Capital Ltd in November 2021 for undisclosed amounts, according to the Land Registry. These properties have not as yet been seized.