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The past and present of the Century Mansion
The sky palace located on the top floor of the Junran Hotel in Western Mid-Levels, Hong Kong, recently shocked the real estate industry with a asking price of HK$95 million. This high-rise unit with a usable area of 2,182 square feet not only carries the nine-year love story of Chinese-Portuguese mixed-race supermodel Mandy Lieu and former chairman of Suncity Group, Zhou Zhuohua (Ximihua), but also becomes a unique case of judicial interaction between Hong Kong and Macau because it involves cross-border judicial cases and complex financial operations.
The property is owned byMelco International(00200)'s Melco Crown took over as a creditor and entrusted an agent bank to sell the shares, which immediately sparked heated discussions in the market. From a real estate professional perspective, the uniqueness of this transaction lies in its multiple legal attributes - it is not only the disposal of collateral for cross-border debt collection, but also a judicial auction of celebrity assets, and a typical case of the execution of Macau judicial judgments in Hong Kong.
According to the Land Registry,Mandy LieuShe purchased this unit for HK$91.3257 million in the name of the company in June 2014, when her relationship with Zhou Zhuohua was exposed. It is worth noting that this transaction coincided with the peak of Hong Kong's luxury housing market, and the transaction price was 38% higher than when it was first launched in 2012, indicating that the parties involved are extremely optimistic about the future market. However, with the arrest of Zhou Zhuohua in Macau in 2021, the fate of this love nest took a sharp turn for the worse.
The financial battlefield of cross-border judicial cooperation
Melco Crown obtained the mortgage right of the unit in November 2021, and a two-year legal tug-of-war ensued. Legal experts pointed out that this mortgage has typical "cross-border guarantee" features - Macau-registered Melco Crown accepts Hong Kong properties as collateral, which involves differences in the two places' legal systems in determining the priority of debts. When the High Court ruled in 2022 requiring Mandy Lieu to hand over the unit, Zhou Zhuohua was sentenced to 18 years in prison in the first trial in Macau. The coincidence of timing triggered many associations.
It can be seen from the financial statements that Melco International has continued to tighten its credit policy in recent years. The Group's 2023 interim report showed that the provision for impairment of loans receivable increased by 27% year-on-year, reflecting the urgency of disposing of high-risk assets. This may explain why the company chose to sell the property urgently in the current market conditions. Although the price has only increased slightly by 4% compared to the purchase price, the actual profit may be far lower than the book figure considering the exchange rate fluctuations and interest costs over the past eight years.
Ceiling mirror design affects the relationship between husband and wife
As photos of the interior were exposed, the design of the unit's most eye-catching 400-square-foot master bedroom sparked heated discussions online. Senior interior designer Liang Jinghao analyzed that this kind of full mirror decoration needs to overcome multiple technical challenges: "The diameter of the ceiling round mirror is 2.1 meters, and it is necessary to customize explosion-proof glass, combined with hidden LED light strips to create a space capsule effect. The mirror TV wall at the end of the bed uses one-way perspective technology to ensure privacy while maintaining visual transparency."
Feng shui expert Song Shaoguang has a different opinion: "Mirrors are yin, and excessive use can easily cause aura disorder. But this design cleverly uses the Victoria Harbour waterscape to balance the five elements. The bathtub mirror wall faces the southeast position, which is in line with the 'wind and water' pattern. It can be seen that the design team does have the guidance of an expert." However, he reminded potential buyers to rearrange the layout according to their birth date, otherwise the "mirror evil" may affect the relationship between husband and wife.
The Butterfly Effect in the Silver Market
Liu Jiahui, chief analyst of Midland Realty, pointed out that this transaction is indicative of Hong Kong's luxury housing market: "The asking price of silver-owned properties is usually 15-20% lower than the market price, but this unit maintains a premium attitude, reflecting the creditor's confidence in scarce landscape assets." It is worth noting that in 2023, the number of silver-owned luxury properties with a price of more than 20 million yuan surged by 68% year-on-year, indicating that highly leveraged investors are under greater pressure.
Data from Centaline Property Research Department shows that similar units in the Western Mid-Levels have recently been sold for about HK$43,000 per square foot. Based on this, it is estimated that the market value of the unit should be around HK$93.8 million. Although the current asking price of 95 million is within a reasonable range, there are still uncertainties as to whether the transaction can be completed quickly amid the interest rate hike cycle. Industry rumors have it that a Southeast Asian fund has expressed interest, but requires that the existing decoration be retained for use as a specialty hotel.
A commercial variation of emotional entanglement
This triangular relationship, which began in 2014, has always been closely linked to the capital market. When Mandy Lieu bought the unit at Ranran, Zhou Zhuohua wasSuncity GroupWith massive expansion, the stock price soared by 580% between 2014 and 2017. The emotional relationship and business empire expanded simultaneously, and by the time breakup rumors emerged in 2019, the group's market value had evaporated by more than 70%.
People familiar with the matter revealed that the timing of the mortgage of the luxury mansion was quite meaningful: "When the mortgage was processed in 2021, Chau Cheuk-wah was restricted from leaving the country. This asset disposal can be regarded as risk control and may also involve complex cross-border asset transfer arrangements." It is worth noting that Melco Crown's parent company Melco International has continued to reduce its holdings of Suncity shares in recent years, and had completed its inventory six months before Chau Cheuk-wah was arrested.
Grey area of jurisdiction
As the case involves the jurisdiction of both Hong Kong and Macao, there is controversy in the legal community over the details of the execution. Associate Professor Cheung Tat-ming of the Faculty of Law at the University of Hong Kong explained: “According to the Mainland Judgments (Reciprocal Enforcement) Ordinance, the civil compensation part of a criminal judgment in Macau can be applied for enforcement in Hong Kong. However, this case is a commercial mortgage dispute, and the creditor needs to pursue the claim in accordance with the Hong Kong Conveyancing and Property Ordinance.”
This type of judicial collaboration is increasingly common in cross-border debt collection. Data from the judiciary show that Hong Kong handled 147 cross-border collateral disposal cases in 2022, a year-on-year increase of 41%, of which the proportion of cases involving Macau increased from 12% in 2019 to 23%. However, due to the different definitions of "usury" in the two places, the legality of some mortgage agreements still faces legal risks.
The mystery of how celebrities’ assets are disposed of
The difficulty in disposing of Mandy Lieu's assets reflects the difficulties faced by celebrities in realizing their special assets. In addition to Ranran's unit, her townhouse in Chelsea, London, is also facing valuation disputes. Real estate consultancy Knight Frank pointed out that such luxury homes with strong personal imprints usually require a special marketing period of 6-12 months, and the transaction price is often 10-15% lower than the market price.
Further complicating matters are the valuation fluctuations caused by cultural differences. The unit's much-discussed mirrored design may be seen as avant-garde in Western markets, but may be considered taboo by Asian buyers due to feng shui issues. “A dual-track pricing strategy should be adopted for such properties, which can attract both owner-occupiers and commercial investors,” advises Savills head of valuations, Albert Lee.
The secret war for wealth in the post-Xi Mihua era
As Zhou Zhuohua was officially imprisoned, his business empire entered the deep waters of asset restructuring. Sources in the financial sector revealed that Suncity’s related assets have shrunk to 15%, which is less than its peak, but the disposal of invisible assets is still difficult. The progress of the disposal of properties under Mandy Lieu’s name will provide an important reference for the subsequent liquidation of billions of cross-border assets.
It is worth noting that Melco International’s role change in this transaction. This company, which once cooperated with Suncity to develop the Crystal Tigre de Cristal casino in Russia, is now disposing of related assets as a creditor, reflecting that Macau's gaming industry is undergoing a profound reshuffle. Analysts predict that similar cross-border collateral disposal cases may more than triple in the next three years.
Diverse Interpretations of Internet Public Opinion
On social media platforms, the discussion about this transaction has gone beyond the scope of real estate. The cumulative reading volume of the Weibo topic # Mirror on the Ceiling # has exceeded 230 million, and netizens’ creative modifications are endless. Psychology doctor Huang Yi-ni analyzed: "The public's desire to explore private spaces and their complex emotions about the lifestyles of the rich resonate in this incident. This collective psychology deserves in-depth study by the sociological community."
There are also voices questioning the media's excessive focus on celebrities' private lives. In his column in Ming Pao, commentator Lin Peili pointed out: "When judicial cases are interpreted in an entertaining way, it actually undermines the spirit of the rule of law. We should pay more attention to the improvement of the cross-border judicial cooperation mechanism rather than the erotic imagination of mirror decoration."
The ups and downs of assets in the microcosm of the times
From its purchase at 91.32 million to its sale at 95 million, behind the book value increase of 8% are multiple narratives of cross-border capital flows, the evolution of judicial cooperation and the deconstruction of emotional relationships. When the mirrored ceiling reflects the night view of Victoria Harbour, this palace in the sky is not only a witness to one's personal destiny, but also a unique code to interpret the integration process of Hong Kong and Macao. As potential buyers emerge one after another, this multi-dimensional game involving law, finance and culture will surely continue to write a new chapter.
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