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A British court has allowed property group JLL to continue managing 33 luxury apartments in London owned by the ex-wife of China Evergrande co-founder, after her assets were frozen following the Chinese developer’s bankruptcy.
The US-listed group runs rental and management services for apartments near the River Thames on behalf of Ding Yumei, the former wife of property tycoon Hui Ka Yan, once the richest man from China, but now detained on suspicion of involvement in “illegal crimes”. . Ding herself lives in one of the luxury apartments, according to court documents.
Judges in London and Hong Kong granted injunctions last year that froze Ding’s assets worldwide, after liquidators were appointed to recover funds for Evergrande investors. JLL told a London court it was no longer willing to manage the properties unless it was made clear it had permission to do so, filings show, a case it has now won.
The trial offers a rare window into the usually discreet dealings between property groups such as JLL and wealthy foreign clients seeking to hide their funds in centers like London. JLL employs more than 100,000 people worldwide in industries ranging from facilities management to advising on multibillion-dollar commercial real estate transactions.
Court filings by Evergrande’s liquidators indicate that Ding is “among the principal beneficiaries” of “what is considered to be the the biggest financial fraud be from mainland China.
JLL and Ding declined to comment.
The liquidators, Eddie Middleton and Tiffany Wong, restructuring specialists from Alvarez & Marsal, were appointed a year ago when a Hong Kong judge ordered the liquidation of Evergrande’s holding company, listed in the territory.
They run towards claim and sell assets around the world that could allow them to remit money return to creditors. The company had more than $20 billion in offshore debt outstanding when it defaulted in 2021.
Ding owns the apartments on Carnation Way in Nine Elms, south of the River Thames, through five companies registered in the British Virgin Islands, according to documents filed with the court. JLL provides leasing and property management services such as marketing apartments, arranging rental agreements and collecting rent, the documents show.
The Financial Times identified seven such properties, which cost £15.6 million.
A court order issued last month says JLL can handle payments related to “assuming the costs of insurance and repair, replacement and/or repair of plant and equipment only when necessary and on a “like for like” basis, payment of ground rents and service charges, as well as payments for utilities,” among others.
Ding had objected to the court making the order, saying it was unnecessary and harmed her position in Hong Kong’s legal proceedings. Evergrande’s liquidators supported JLL’s case, saying: “All parties to the proceedings agree that JLL should continue to provide its services. . . preserve the value of these properties and ensure that they can continue to generate income.
Additional reporting by Chan Ho-him and Chris Cook