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A British court has given property group JLL permission to continue managing 33 London apartments owned by the ex-wife of the Chinese founder of Evergrande, after her assets were frozen following the collapse of the Chinese developer.
The US-registered group runs the letting and management services for the flats near the river Thames on behalf of Ding Yumei, the ex-wife of property tycoon Hui Ka Yan, who was once China's richest man but is now arrested on suspicion of involvement in “illegal crime”. Ding lives in one of the luxury apartments, court filings say.
Judges in London and Hong Kong last year ordered a worldwide freeze on Ding's assets, after the dealers were appointed. refund money to Evergrande investors. JLL has told a London court it no longer intends to manage the properties unless it is made clear it has permission, the document shows, a case which has now been won.
The lawsuit provides a rare window into the usual collusion between property groups like JLL and wealthy overseas buyers who want to hide their money in centers like London. JLL employs more than 100,000 people worldwide in businesses ranging from facility management to multi-billion dollar real estate advisory.
Evergrande court filings say Ding is “among the primary beneficiaries” of what is “understood to be major financial fraud that it came from the land of China”.
JLL and Ding declined to comment.
The traders, Alvarez and Marshall restructuring experts Eddie Middleton and Tiffany Wong, were hired last year when a Hong Kong judge ordered the liquidation of Evergrande's holding company, which is listed in the region.
They ran to claim to and sell assets around the world that enable them to move money return to the debtors. The company had more than $20 billion in debt when it defaulted in 2021.
Ding owns the apartments, on Carnation Way in Nine Elms, south of the Thames, through five companies registered in the British Virgin Islands, according to court filings. JLL offers letting and property management services such as selling apartments, setting up leases and receiving rents, the filings say.
The Financial Times identified seven properties, worth £15.6mn.
A court order issued last month states that JLL can handle payments in respect of “meeting the cost of insurance and the repair, replacement and/or repair of equipment and installations only where necessary and on a 'like-like' basis, the payment of ground rent and service charges, and and utility bills”, among other things.
Ding objected to the court's granting of the order, saying it was unnecessary and undermined his position in the Hong Kong courts. Evergrande's publishers supported JLL's case, saying: “All parties in this debate agree that JLL should continue to provide its services. . . to maintain the value of those buildings and ensure that they can continue to generate income.”
Additional reporting by Chan Ho-ye and Chris Cook