20 January 2025

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A British court has granted property group JLL permission to continue managing 33 luxury apartments in London owned by the ex-wife of China Evergrande's co-founder, after its assets were frozen following the collapse of the Chinese developer.

The US-listed group operates rental and management services for apartments near the River Thames on behalf of Ding Yumei, the ex-wife of property tycoon Hui Kayan, who was once China's richest man but is now detained on suspicion of involvement in “illegal crimes”. . Court documents say Deng herself lives in one of the luxury apartments.

Judges in London and Hong Kong last year issued injunctions freezing Deng's assets worldwide, after appointing liquidators Refund For Evergrande investors. JLL told a London court it was no longer willing to manage properties unless it was made clear it had permission to do so, a case it has now won.

The lawsuit provides a rare window into the usually secretive dealings between real estate groups like JLL and wealthy clients abroad looking to stash their money in centers like London. JLL employs more than 100,000 people worldwide in work ranging from facilities management to advising on multi-billion-dollar commercial real estate deals.

Court filings by Evergrande's liquidator say Deng is “among the principal beneficiaries” of “what is understood to be… The biggest financial scam “It came out of mainland China.”

JLL and Deng 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 territory's listed holding company Evergrande Holdings to be liquidated.

They are racing to claims to and selling assets around the world that might enable them to deliver funds Back to creditors. The company had more than $20 billion in external debt issued when it defaulted in 2021.

Deng 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 leasing and property management services such as marketing apartments, entering into lease agreements and receiving rent, the filings say.

The Financial Times has identified seven of these properties, which cost £15.6 million.

The court order issued last month states that JLL can handle payments relating to “covering insurance costs, repairs, replacement and/or repair of fixtures and fittings only where necessary and on a ‘like-for-like’ basis, payment of ground rent, service charges and utility payments”, among other things. .

Ding opposed the court's issuance of the order, saying it was unnecessary and harmed her position in the Hong Kong court proceedings. Evergrande's liquidators have backed JLL's case, saying: “All parties to the proceedings agree that JLL must continue to provide its services… to preserve the value of those properties and ensure they can continue to generate revenues.”

Additional reporting by Chan Ho-him and Chris Cook

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