Evergrande founder sells luxury personal property at discount to meet debt obligations
Published: Mar 30, 2022 03:56 PM
Evergrande. Photo: CFP

Evergrande. Photo: CFP

Hui Ka Yan, founder of the debt-strapped Evergrande Group, is offloading another mansion at a discount in Shenzhen, South China's Guangdong Province, China Fund News reported on Wednesday, citing a real estate agency.

According to the report, the property covers 980 square meters with four living rooms and four bedrooms, as well as a wine cellar and infinity-edge pool. Purchased at an original price of 400 million yuan ($62.9 million), it is now available for only 280 million yuan.

The agent said that buyers are required to provide verification of having 100 million yuan in cash flow.

It was not the first time that the founder has attempted to free up funds by selling luxury asset sales in a bid to meet the debt obligations of Evergrande.

On January 5, the Shanghai Observer reported that Hui was seeking to sell a duplex mansion covering 753 square meters in Guangzhou at a price of 80 million yuan.

According to China Fund News, since Evergrande was plunged into a liquidity crisis, Hui has, from July 1, personally outlaid seven billion yuan in cash to help the company tide over the crisis.

These funds have been mainly used to pay off 10 percent of the company's monthly financial products, pay staff salaries, repay the interest of the maturing domestic and overseas public bonds, as well as promoting the resumption of its real estate projects across the country.

On March 22, Hui said at a meeting that, by June 22, Evergrande New Energy Vehicle Group had planned for Hengchi 5 electric vehicle model mass production, in order to lay a solid foundation for the healthy and sustainable development of the company.

On March 15, the Ministry of Industry and Information gave the company approval to begin sales of its first electric car model. The model is scheduled to begin accepting pre-orders in the second quarter of this year, the National Business Daily reported, citing people familiar with the matter.

Global Times