Treasurer orders the sale of $39m mansion for breach of foreign ownership laws
Treasurer Joe Hockey recently announced the forced sale of a $39 million mansion in Point Piper Sydney. Joe Hockey directed that the mansion be sold within 90 days to the highest bidder.
The Point Piper mansion Villa de Mare was purchased last year by foreign-owned company Golden Fast Foods. Golden Fast Foods is owned by Evergrande Real Estate Group which is listed on the Hong Kong Stock Exchange. Evergrande was established by Chinese billionaire Xu Jiayin.
Foreign investors are required by law to notify the Foreign Investment Review Board (FIRB) before purchasing residential real estate. Golden Fast Foods failed to notify FIRB of its intended purchase. Joe Hockey ordered that the company directors sell the property within 90 days or otherwise face prosecution and possible jail terms. It is expected that the mansion will be sold at a significant loss due to the 90 day selling period.
The forced sale of the Point Piper mansion reflects the recent government initiative to rigorously monitor and penalise breaches by foreign investors.