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A British court has given property group JLL permission to continue managing 33 luxury London apartments owned by the ex-wife of co-founder China Evergrande, after her assets were frozen following the collapse of the Chinese developer.
The US-listed group runs a rental and management service for flats near the River Thames on behalf of Ding Yumei, the ex-wife of property tycoon Hui Ka Yan, once China’s richest man but now in custody on suspicion of being involved in “illegal crimes”. . Ding herself lives in one of the luxury apartments, according to court records.
Judges in London and Hong Kong last year issued injunctions freezing Ding’s assets worldwide after liquidators were appointed recover funds for Evergrande investors. JLL told a London court it no longer wanted to manage the property unless it was made clear it had permission for what it has now won, documents show.
The lawsuit provides a rare insight into otherwise discreet dealings between property groups such as JLL and wealthy overseas clients who want to hide their assets in centers like London. JLL employs more than 100,000 people worldwide in roles ranging from facilities management to consulting on multi-billion dollar commercial real estate deals.
Court filings by Evergrande’s liquidators say Ding is “among the principal beneficiaries” “of what is believed to be the biggest financial fraud originated from mainland China”.
JLL and Ding declined to comment.
The liquidators, restructuring specialists Alvarez & Marsal Eddie Middleton and Tiffany Wong, were appointed a year ago when a Hong Kong judge ordered the liquidation of Evergrande’s holding company, which is listed in the territory.
They race in lay claim to and sell off assets around the world that could enable them to hand over the money back to creditors. The company had more than $20 billion in offshore debt issued when it filed for bankruptcy 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 court filings. JLL provides rental and property management services such as apartment marketing, leasing and rent collection, the filings said.
The Financial Times identified seven properties costing £15.6m.
A court order issued last month said JLL could make payments in connection with “defraying the cost of insurance and repairs, replacement and/or repair of equipment and fixtures only when necessary and on a ‘like for like’ basis, the payment of ground rent and fees for services and utility payments”, among other things.
Ding challenged the court that issued the order, saying it was unnecessary and prejudiced her position in the Hong Kong court proceedings. Evergrande’s liquidators backed JLL’s case, saying: “All parties to the proceedings agree that JLL should continue to provide its services. . . to preserve the value of those properties and ensure they can continue to generate income.”
Additional reporting by Chan Ho-him and Chris Cook
