The court allows JLL to manage luxury London apartments linked to Evergrande

Open the editor’s digest for free

FT editor Rula Khalaf picks her favorite stories in this weekly newsletter.

A British court has allowed property group JLL to continue managing 33 luxury London apartments owned by the former Chinese Evergrande co-founder’s wife after her properties were frozen following the collapse of the Chinese developer.

The US-listed group, which runs a rental and management service for apartments near the River Thames, is represented by Ding Yumei, a former Chinese tycoon who is now in jail on suspicion of “illegal offences”. . Ding herself lives in one of the luxury apartments, court records say.

Last year, judges in London and Hong Kong granted orders to freeze Ding’s assets worldwide, and liquidators were appointed. Return money For Evergrande investors. JLL told a London court that it was unwilling to manage the properties until it could prove it had a license, documents show, in a case it has now won.

The lawsuit provides a rare window into the normally discreet relationship between property groups like JLL and wealthy overseas clients who want to keep their money in centers like London. JLL employs more than 100,000 people worldwide advising on everything from facility management to multi-billion dollar commercial real estate transactions.

In Evergrande’s liquidation court filings, Ding said he was “one of the main beneficiaries”. The biggest fraud It’s emerging from mainland China.”

JLL and Ding declined to comment.

Liquidators Alvarez and Marshall’s restructuring specialists Eddie Middleton and Tiffany Wong were appointed a year ago when a Hong Kong judge ordered the winding up of Evergrande’s holding company, which is listed in the territory.

They are racing. Making a claim And they sell assets around the world that allow them to give money in hand return to creditors. The company At the time of its default in 2021, it had more than $20 billion in offshore debt.

Ding owns the apartments on Carnation Way, south of the River Thames in Nine Elms, through five companies registered in the British Virgin Islands. JLL provides leasing and property management services, such as marketing apartments, drafting lease agreements and collecting rents, the filing said.

The Financial Times identified seven of his properties, worth £15.6m.

A court order issued last month said JLL could make payments “only when deemed necessary to meet insurance and maintenance costs, replace and/or repair equipment and supplies, and on an ‘as-is’ basis.” Land rent and service charges, and utility charges”, among other things.

Ding objected to the court’s injunction, saying it was unnecessary and prejudicial to her position in the Hong Kong court hearing. In support of JLL’s case, Evergrande Liquidators said, “All participants in the process have agreed that JLL will continue to provide the service. . . To protect the value of those assets and ensure they continue to generate income.

Additional reporting by Chan Ho-him and Chris Cook