SHANGHAI :
Buyers Snub USD480 Million of Jia Yueting's Property at Auction
Liao Shumin
DATE:  Jan 09 2019
/ SOURCE:  yicai
Buyers Snub USD480 Million of Jia Yueting's Property at Auction Buyers Snub USD480 Million of Jia Yueting's Property at Auction

(Yicai Global) Jan. 8 -- Real estate owned by beleaguered Chinese businessman Jia Yueting and valued at CNY3.29 billion (USD480 million) has failed to sell through a court-ordered auction on Alibaba's Taobao platform.

Despite attracting nearly 50,000 views, the online sale ended up "bought in," meaning the assets remain those of their owner Jia, who is the founder of electric car startup Faraday Future.

The Beijing Third Intermediate People's Court put all of Beijing Junshi Science & Technology Culture Communication Center, a subsidiary of Jia's Leshi Holding Beijing, up for grabs. Valued at CNY3.29 billion, it owns a high-end commercial building of nearly 50,000 square meters with an underground parking lot, court documents show. Located in the downtown Sanlitun area of Beijing, the complex is believed to be Jia's most valuable asset. 

The opening price for bidding was set at a little over CNY2.3 billion. But after more than 1,000 people set up online alerts and 47,000 views in the first month, nobody actually bid during the 24-hour auction from 10 a.m. on Jan. 7 to 10 a.m. on Jan. 8. 

According to Lu Weixing, who manages Taobao's auctions, the assets will need to be put up for sale again on the same platform within 30 days, per procedure. 

"The price drop for the second auction's opening bid should be generally no more than 20 percent of the previous opening bid, and the court will still decide the price," Lu said, suggesting an opening price of about CNY1.8 billion for the second auction. 

Jia bought Junshi Science & Technology and all of affiliated property management firm Beijing Baiding New Century Business Management from developer Shimao Property for nearly CNY3 billion in 2016, when he pledged Junshi Science & Technology shares to China Citic Bank due to financial difficulties. 

Leshi Holding is still in dispute with China Citic Bank over the equity pledge, court documents show.

Jia has said his aim in meeting Sun Hongbin, a prominent Chinese property developer, was to sell a property in Sanlitun, just one of his attempts to trade the project. Later, he also tried to sell it to real estate giant China Vanke for CNY4 billion. The two parties didn't reach a deal since Vanke valued the property at just CNY2 billion.

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Keywords:   Jia Yueting, Leshi