The Chairman of the board of directors of China Evergrande Group, Xu Jiayin, was exposed for illegally constructing a 5000 square foot (464 square meters) underground basement in his luxury mansion in Hong Kong. The news on this scandal made headlines on August 6th.
Reports on “Xu Jiayin’s Hong Kong Mansion found to have Illegally Built 5000 sq ft” were published by several Chinese media outlets on August 5th. The illegal construction was discovered in one unsold individual villa located at No. 10E Bullock Path on the Peak in Hong Kong, with an unauthorized extension of over 6000 square feet (approximately 557 square meters). This includes the platform in front of the mansion extending over a thousand square feet upward, and an estimated 5000 square feet basement that was dug out and built under the lower level.
According to information disclosed by the Hong Kong Buildings Department, it was found that a structure was unlawfully added to the outdoor area of the ground floor of the villa at 10E Bullock Path, which included a platform with wooden flooring and concrete, along with stairs connecting to the main entrance of the mansion and adjacent passageway.
As early as June this year, the Buildings Department in Hong Kong ordered the demolition and registration of the property (deed annotation) for this construction. The department pointed out that illegal extensive modifications and expansions were made to the mansion’s underground lower level, and a professional team will be appointed to follow up with the demolition order. Another individual villa within the same estate was also found to have illegal constructions, and a demolition order will be issued for one of them. Larger excavated areas will need to be backfilled according to the approved plans.
In 2010, a year after Evergrande’s listing in Hong Kong, Xu Jiayin splurged 2.5 billion Hong Kong dollars to purchase three villas at No. 10 Bullock Path on the Peak, divided into Blocks B, C, and E. With the breakdown of Evergrande’s financial chain, these three luxury residences have been utilized as sources to repay debts across various markets.
In 2021, Blocks C and E were mortgaged to lending companies for financing; in October 2022, Xu Jiayin further mortgaged Block B to China Construction Bank (Asia) as part of an extension for unpaid debts. As Evergrande’s financial situation did not improve, the three Bullock Path mansions began to be taken over by related creditors, and were put on the market shelves in February 2024.
In the early part of 2024, Block B was sold off; then in October of the same year, Blocks C and E were listed at a price of 900 million Hong Kong dollars, which was a 40% discount from the earlier estimated value of 1.5 billion Hong Kong dollars.
It is reported that Block E at No. 10 is a three-story independent mansion with a private garden and an indoor elevator, with a practical area of approximately 4933 square feet, currently being sold as it stands.
Following the Evergrande debt crisis and investigations targeting Xu Jiayin, his assets have been scrutinized by global creditors, with his assets in Hong Kong being among the first to be monitored and disposed of. According to court documents, it was revealed that Xu Jiayin also owns at least one Airbus A319, an Airbus A330, a Gulfstream G450 private jet, two yachts, two Rolls-Royce Phantom series cars, and extensive real estate worldwide.