Source: Securities trader China
Lawyer Jing Lai's Guide
Recently, according to Hong Kong media reports, House B, one of the three western-style houses at No. 10, Bulijing, Peak, once held by Evergrande founder Xu Jiayin and relevant people, was recently accepted by the buyer at a price of about HK $470 million after being sold for more than a year. This price is almost "halved" compared with the one-year valuation of HK $880 million.
It is reported that the above property related to Xu Jiayin is House B, No. 10, Bulijing, which has been taken over by CCB Asia for a long time and was put on sale a year ago.
In this regard, the Chinese reporter of the securities firm sought confirmation from Evergrande. As of the time when the securities firm China published the report, no official response has been received. （Jlls）
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Lawyer Jing Lai
Xu Jiayin's Hong Kong luxury residence was sold by "cutting the waist"
Recently, the Ming Pao of Hong Kong reported that House B, one of the three western-style houses at No. 10, Bulijing, Peak, once held by Evergrande founder Xu Jiayin or relevant persons, was recently accepted by the buyer for about 470 million Hong Kong dollars after being sold for more than a year.
It is understood that the practical area of the above-mentioned western-style houses is about 5171 square feet. The property was taken over by China Construction Bank (Asia) in November 2022 and officially launched to the market in early March 2023. At that time, the market valuation was 880 million Hong Kong dollars, and the unit price was about 170200 Hong Kong dollars/square meter. It has attracted dozens of groups of buyers for consultation, but because the bid received did not meet the requirements of the creditor bank, Finally, the transaction failed.
After more than a year of listing, the property finally attracted buyers who were actively negotiating. Market news revealed that the creditor bank sold the property at a price of about 470 million yuan, with the unit price of about 90900 yuan/square meter. If the transaction is true, the transaction price is 46.6% lower than the market valuation of 880 million yuan more than a year ago.
According to public information, Xu Jiayin purchased three foreign style houses at No. 10, Brilliant Path, Peak in 2010, namely, House B, House C and House E, with a total market value of about HK $2.5 billion.
In 2021, after Evergrande's liquidity crisis, Xu Jiayin mortgaged these three luxury houses successively to ease the capital dilemma. In October 2022, Xu Jiayin mortgaged a luxury house purchased here to China Construction Bank (Asia) as a grace for overdue bonds, which was formally taken over by China Construction Bank (Asia) in March 2023; House C and House E are also mortgaged.
In the end, the three luxury residences were all reduced to "bank owners", that is, when the owner of the property could not repay the mortgage loan for any reason, the creditor (bank owner) would apply to the court to recover the property, and then entrust an agent or auction house to sell or auction it to the public to find new contributors and fill the debt. In Hong Kong, such real estate is called the "silver master".
Previously, in November 2021, after Evergrande exploded, relevant insiders also disclosed to the Chinese reporter of the securities firm that from July 2021 to November 2021, Xu Jiayin raised funds by selling personal assets or pledging equity, and cumulatively injected 7 billion yuan of cash into the group.
In addition to luxury residences, last June, Evergrande's office building in Hong Kong, "China Evergrande Center", was also delisted and renamed as "Wantong Insurance Center". The building was formerly "American Wantong Building". It was once the headquarters of Chinese real estate and a Grade A office building. In 2015, Evergrande bought the building from Chinese real estate with HK $12.5 billion, and renamed it China Evergrande Center.
This also means that Evergrande and Xu Jiayin purchased a large number of office buildings, residential buildings and other assets in Hong Kong during the period of vigorous development, gradually erasing the "Evergrande" imprint.
Xu Jiayin has already been arrested and punished
The news of the sale of luxury houses in Hong Kong reminds the outside world of Xu Jiayin again.
As early as last September, China Evergrande released an inside information announcement at the Hong Kong Stock Exchange, saying, "The company has received a notice from the relevant departments that Xu Jiayin, the executive director and chairman of the board of directors of the company, has been taken compulsory measures according to law due to his suspected illegal crimes."
On March 18 this year, 172 days after Xu Jiayin was suspected of committing crimes and was taken compulsory measures, Evergrande Real Estate announced that its company had received the administrative punishment from the CSRC and the advance notice of market access prohibition.
The CSRC reported that Evergrande Real Estate disclosed false records in its 2019 and 2020 annual reports, and its public issuance of corporate bonds was suspected of fraudulent issuance, and it failed to disclose relevant information in a timely manner as required.
The CSRC pointed out that Xu Jiayin, the then chairman of Evergrande Real Estate, comprehensively managed all businesses of Evergrande Real Estate, and encouraged other personnel to falsely increase the annual report performance of Evergrande Real Estate. The means were particularly bad, and the circumstances were particularly serious. He was the directly responsible person in charge. At the same time, as the actual controller, he organized and directed the implementation of the above illegal acts.
The CSRC decided to order Evergrande Real Estate to correct, give a warning and impose a fine of 4.175 billion yuan; Xu Jiayin was warned and fined 47 million yuan. At the same time, Xu Jiayin was banned from entering the securities market for life.
The situation of China Evergrande, a listed company, is also not optimistic. On January 29 this year, the Hong Kong High Court issued an order for China Evergrande to liquidate. Edward Simon Middleton and Huang Yongshi of Amway Consulting Co., Ltd. were appointed by the High Court as joint and separate liquidators of China Evergrande on January 29, 2024. China Evergrande shares will continue to be suspended until further notice.
On April 30, 2024, China Evergrande also failed to release the 2023 annual report as scheduled, and the company continued to suspend trading.
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