Fugitive billionaire’s building sold online for ‘bargain’ $734M

Written by Oscar Holland, CNN

Contributors Serenitie Wang, CNN

With its exaggerated crown and bulging upper levels, the 39-floor Pangu Plaza casts an unusual shadow over Beijing.

And now the dragon-inspired skyscraper has an equally odd ownership story: It sold online Tuesday for a bargain $734 million after being confiscated from a fugitive billionaire.

Located less than half a mile from the iconic Bird’s Nest stadium, the 629-foot-tall tower was completed in 2008 in a district built for that year’s Beijing Olympics.

People walk past Pangu Plaza on August 20, the day it was sold in an online auction.

People walk past Pangu Plaza on August 20, the day it was sold in an online auction. Credit: Greg Baker/AFP/Getty Images

But in 2016, authorities seized ownership of the skyscraper from a real estate company controlled by exiled Chinese billionaire Guo Wengui. A Beijing court then put the building up for auction on a website run by e-commerce giant, Alibaba.

Guo, who claims to be a corruption whistle-blower and has lived in the US since 2014, is wanted by Chinese authorities on a series of charges, including fraud and bribery. Many of his assets in China have been frozen or repossessed by the government.

According to the online listing, only two bidders signed up to participate in the auction, though more than 150,000 people registered to watch the sale online. Bidding was open for 24 hours, with only two offers for the building made in that time.

Related video: Architect Ma Yansong on why curves matter

The property eventually sold for just under 5.19 billion yuan ($734 million), only 5 million yuan ($708,000) above the opening bid.

The buyer has been identified as Beijing property firm Yucheng Zhiye, according to a statement released by its parent company, BBMG Corporation. And the group may have secured something of a bargain: The auction listing claims the tower is worth over 7.4 billion yuan ($1.05 billion) — more than 40% above the selling price.

Guo claims that the property is worth even more. In a video uploaded to YouTube on Wednesday, he said the winning bid was only 10% of its estimated value.
The tower was designed to resemble a dragon's head, with a further four towers representing the creature's body and tail.

The tower was designed to resemble a dragon’s head, with a further four towers representing the creature’s body and tail. Credit: KreangchaiRungfamai/iStock Editorial/Getty Images

With a combined floor space of more than 1.5 million square feet, the skyscraper currently serves as the China headquarters for American technology firm IBM. It was designed to resemble a dragon’s head, with a further four towers representing the creature’s body and tail.

Pangu Plaza’s other buildings — which contain offices and a self-described “7 Star Hotel” — were not included in the auction.

Read the full article at: cnn.com