Daily Management Review

With Evergrande Struggling To Repay Debts, Luxury Assets Of Its Chief Reported To Be Sold


With Evergrande Struggling To Repay Debts, Luxury Assets Of Its Chief Reported To Be Sold
With the embattled Chinese real estate company China Evergrande Group scribbling to meet its financial commitments, its founder is freeing up monies from luxury assets such as art, calligraphy, and three high-end houses, said reports emerging from China quoting sources and documents. 
According to other reports last month, Evergrande chairman Hui Ka Yan, 63, has been directed by Chinese officials last month about using part of his own riches to help pay bondholders.
Markets have been spooked by Evergrande's failure to satisfy bond repayments, which has placed many of its investors, creditors, and suppliers in financial limbo.
Evergrande owes more than 18 million yuan ($2.8 million) to a cleaning company that is owned by Guo Hui, said in an interview with Reuters that he had to sell off his Porsche Cayenne and an apartment to meet his debt obligations.
"He should be selling his things," Guo told Reuters. "He had no choice once the authorities made him."
According to a document with Hong Kong's Land Registry, Hui pledged one of his 5,000-square-foot houses on The Peak, Hong Kong's most elite residential enclave with sweeping vistas over the city's sparkling skyscrapers, for a loan from China Construction Bank in October.
According to Reuters, the property is worth roughly HK$800 million ($103 million), and local media said that it was promised to earn about HK$300 million to cover an overdue Evergrande bond.
According to the Land Registry, the businessman, who was named Asia's wealthiest man in 2017, pledged two more luxury residences in the same complex to Orix Asia Capital Ltd on November 8 for unknown amounts.
On Tuesday, local news site HK01 reported that the total sum raised was HK$821 million.
According to the estate agent, one of the houses is valued HK$800 million, while the other is larger and worth HK$1 billion, according to HK01.
There were no comments available on the issue from Hui and Evergrande.  
Hui was reared by his grandmother in a rural location and established Evergrande in southern Guangzhou city in 1996, providing low-cost homes and accumulating a fortune.
According to a person with intimate knowledge of the subject, he acquired a fascination for calligraphy, painting, and Koi carp, a fish considered a sign of good luck and wealth for which he paid tens of millions of yuan.
According to the insider, Evergrande has been selling art and calligraphy to collect cash on Hui's directions. Due to the sensitivity of the matter, the source declined to be identified.
Evergrande generated more than $50 million by selling two of its private planes to American aircraft investors, according to the Wall Street Journal.
According to Chinese media sources, Hui reportedly has a 60-meter yacht named "Event" valued at $60 million, as well as a private Airbus plane.
Requests for comment on Hui's planes, yacht, and other assets were not returned by Hui or Evergrande.
Despite the fact that Hui's net worth has decreased in recent years from about $45 billion in 2017, according to the Hurun China Rich List 2021, he is still worth $11.3 billion.