A British court has allowed property group JLL to continue managing 33 luxury London apartments owned by the ex-wife of China Evergrande's co-founder after her assets were frozen following the collapse of the Chinese developer.
The US-listed group provides leasing and management services for apartments near the Thames on behalf of Ding Yumei, the ex-wife of property tycoon Xu Jiayin. Xu Jiayin was once the richest man in China, but is now detained on suspicion of involvement in "illegal crimes." . Ding himself lived in one of the luxury apartments, court documents said.
Last year, judges in London and Hong Kong issued injunctions freezing Ding's assets around the world after a liquidator was appointed to recover funds from Evergrande investors. Documents show JLL told a London court it was no longer willing to manage the properties unless express permission was granted, and the firm has now won the case.
The lawsuit provides a rare window into the often discreet dealings between real estate groups such as Jones Lang LaSalle and wealthy overseas clients who want to park their money in centers such as London. With more than 100,000 employees worldwide, JLL's practice ranges from facilities management to advising on billion-dollar commercial real estate transactions.
Court documents filed by Evergrande's liquidators said Ding was "one of the main beneficiaries" of "what is believed to be the largest financial fraud case in mainland China".
JLL and Mr Ding declined to comment.
The liquidators are Alvarez & Marsal restructuring experts Eddie Middleton and Tiffany Wong, who were appointed a year ago when a Hong Kong judge ordered the liquidation of Hong Kong-listed Evergrande Holdings.
They race to claim and sell assets around the world in order to return funds to creditors. The company had issued more than $20 billion in offshore debt when it defaulted in 2021.
Court documents show Ding owns the apartments in Carnation Road, Nine Elms, south of the Thames, through five companies registered in the British Virgin Islands. JLL provides leasing and property management services, such as marketing apartments, entering into lease agreements and collecting rent, the filing said.
The Financial Times has identified seven of the properties, worth £15.6 million.
A court order issued last month said JLL could handle payments relating to "insurance and repair, replacement and/or repair costs of fixtures and fittings only where necessary and on a 'like for like' basis" on, payment of ground rent and service charges and utility bills” etc.
Ms Ding objected to the court order, saying it was unnecessary and undermined her position in Hong Kong court proceedings. Evergrande's liquidators supported JLL's lawsuit, saying: "The parties to the litigation agree that JLL should continue to provide services . . . to protect the value of these properties and ensure that they can continue to generate income."
Additional reporting by Haoqian Chen and Chris Cook