Yahoo Finance Chinese Billionaire On A $250 Million Luxury Real Estate Buying Spree
When you envision billionaires living extravagant lives, a man from China who got rich by selling medical devices is probably not the first thing that comes to mind.
But Xu Hang, co-founder of Chinese medical device manufacturer Mindray Medical, is on a real estate buying spree that would make a Saudi oil magnate blush. In the last few years, buyers connected to Xu have bought $250 million worth of luxury estates around the world.
The purchases are notable both for the money paid and that Xu is from mainland China, where a deeply troubled real estate market has stifled the economy. However, Xu's business is in medical devices, and his company made a fortune selling ventilators during the COVID-19 crisis. He is one of China's richest men, although he carries a much lower profile than his contemporaries like Alibaba Founder Jack Ma.
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It could be Xu's desire to maintain a low profile that has created an air of mystery around his buying spree. It is alleged to have begun in October 2022 when a mystery buyer paid $55 million to buy a compound in California's Newport Coast neighborhood from reality television stars Dr. Terry Dubrow and his wife Heather.
Sources told the Robb Report magazine that the mystery buyer is Xu's wife, Gu Fang. Not long after the Newport Coast transaction, mega-star Mark Wahlberg sold his Beverly Hills compound for $55 million. The buyer was not publicly identified but the Robb Report's sources again indicated the buyer was Gu.
Gu's next purchase was rumored to have been on the East Coast. In late 2023, billionaire Stephen Ross sold his penthouse in New York's ultra-prestigious Deutsche Bank Center for $40 million — significantly less than the $75 million asking price. The buyer is listed as a limited liability company (LLC), but many observers believe Xu and Gu control the LLC.
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The most recent purchase by an entity connected to Gu (and by extension Xu) is the most expensive to date. A few months ago, an entity heady by Gu paid an estimated $107 million for a 12,000-square-foot mansion in Hong Kong's prestigious Peak District. The house is clad in limestone and features 180-degree views of the city's skyline and harbor.
That purchase raised eyebrows for several reasons. Hong Kong's real estate market is in a slump, and the $107 million purchase was the largest in the city in the last few years. It also was notable because the buyer was from mainland China, which is dealing with severe real estate industry challenges. According to the Robb Report, records show Gu as the head of the entity that bought the property.
By the time it was all said and done, Xu and Gu had spent $250 million on premier properties around the globe. They purchased them all at steep discounts on the original purchase price. The Peak District mansion was listed at $166 million, but they got it for $107. Wahlberg's compound sold for far less than the $87.5 million asking price.
All told, Xu and Gu got a $126 million discount off the asking prices of their purchases. While the purchases may have been extravagant, it's impossible to argue with Xu's timing or his ability to strike while market conditions are favorable. Nobody reaches a net worth of nearly $20 billion without knowing a good deal when they see one.
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