This Seized (and Rather Ugly) Beijing Skyscraper Just Sold for a Smooth RMB 5 Billion

As the city’s real estate market takes a southward turn, we humble renters may not feel the effects in our pocketbooks, but at least we can gawp as the Pangu Plaza Tower 5 skyscraper sells for just 70 percent of its listed value.

A building built on rickety foundations

Actually, the reason for the auction is that the property’s former owner, billionaire Guo Wengui, is on the run from the Chinese government, and creditors are auctioning off his assets to recover his debts. But the declining market may have contributed to this steal of a deal, as only two parties logged on to Taobao to participate in the online auction for the building, which was sold for RMB 5.2 billion (USD 734 million). The poor turnout was likely down to the fact that just to enter the bidding, interested parties were required to put down a deposit of RMB 1 billion. The auction took bids for a 24-hour period, with the building eventually being sold to Beijing property firm Yucheng Zhiye.

Standing at 191.7m tall, the tower's winding crown, meant to represent the head of a dragon, can be seen for miles around as the only building that nears such heights in the Olympic Park area. It also serves as the China headquarters for technology company IBM. The four buildings behind the tower, which represent the body of the dragon, were not included in the sale.

Pangu Plaza was completed in 2008 in time for the Olympic Games and lies just a kilometer away from another Beijing landmark: the iconic Bird's Nest stadium.

Who is Guo Wengui?

Guo made his fortune in the real estate business and was once the 73rd richest person in China. Confident and more than a little eccentric, he has a tendency to make friends in high places. Unfortunately for him, friends can turn to enemies as he learned in 2014 when his relationships with Chinese officials went sour. Suddenly facing a wave of criminal charges ranging from bribery to kidnapping, he fled the country and has been flying back and forth between the United States and Europe, somehow managing to maintain his freedom despite an ongoing Interpol notice for his arrest.

As a fugitive, he has made friends with the likes of former Donald Trump official Steve Bannon and Abu Dhabi royals. From 2017 to 2018, he owned an apartment in Manhattan worth over USD 80 million and rode around in a bulletproof Mercedes-Benz. 

Dubbing himself a "whistleblower," Guo vehemently denies the charges he faces in China. His claims, however, are on somewhat shaky ground as the New York Times were unable to confirm them, and the Chinese government has made arrests related to the forgery of supposedly confidential documents that Guo provided.

Unsurprisingly, Guo has apparently not taken a liking to his prize asset being sold off to the highest bidder. Shortly after the sale, he uploaded a video to YouTube in which he rants for over an hour and claims that Tower 5 was sold for just 10 percent of its actual worth. It appears as though Beijing is intent to move on with or without Guo in their custody.

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Images: Wikimedia, SCMP, CNN, YouTube