Agency Report
A Chinese investment group is preparing to sell two residential properties in Liverpool, UK, confiscated from Nigeria to recover up to $70million in arbitration awards.
Zhongshang Fucheng Industrial Investment Ltd seized the buildings after Nigeria failed to settle a 2021 arbitration judgement, according to local news outlet, Peoples Gazette.
The properties, located at 15 Aigburth Hall Roadand Beech Lodge, 49 Calderstones Road, were taken by Zhongshang in June 2024.
This action followed a December 2021 British court order permitting the company to seize Nigerian assets in the UK, as the $70 million payment remains outstanding, with a two per cent monthly interest accruing.
Zhongshang was awarded $55,675,000 in compensation, plus $9,400,000 in interest and £2,864,445 in costs as of March 26, 2021, due to a dispute involving Ogun State. The company alleged that Ogun State violated a 2001 trade treaty by rescinding its rights to a free trade zone in 2016.
Nigeria’s Presidency could not be reached for comment.
The firm took Nigeria to arbitration in the UK in 2018, claiming that federal bodies like the police and immigration were used by Ogun State against them without due process.
Two Zhongshang executives were expelled from Nigeria in 2016, with one allegedly detained and tortured by the police.
This case adds to Nigeria’s legal troubles, following a near $11 billion arbitration decision against the country in favour of P&ID, which was later overturned due to corruption.
However, Zhongshang’s case appears more challenging, with several European courts, including in the UK and Belgium, granting enforcement orders against Nigeria.
Recently, an appellate panel in the U.S. denied Nigeria sovereign immunity over Zhongshang’s recovery efforts.
A consultant with Zhongshang revealed plans to list the Liverpool properties for sale, including on eBay, where the asking price could reach up to $2.2 million for both.
This action followed a December 2021 British court order permitting the company to seize Nigerian assets in the UK, as the $70 million payment remains outstanding, with a two per cent monthly interest accruing.
A Chinese investment group is preparing to sell two residential properties in Liverpool, UK, confiscated from Nigeria to recover up to $70million in arbitration awards.
Zhongshang Fucheng Industrial Investment Ltd seized the buildings after Nigeria failed to settle a 2021 arbitration judgement, Peoples Gazette reports.
The properties, located at 15 Aigburth Hall Roadand Beech Lodge, 49 Calderstones Road, were taken by Zhongshang in June 2024.
This action followed a December 2021 British court order permitting the company to seize Nigerian assets in the UK, as the $70 million payment remains outstanding, with a two per cent monthly interest accruing.
Zhongshang was awarded $55,675,000 in compensation, plus $9,400,000 in interest and £2,864,445 in costs as of March 26, 2021, due to a dispute involving Ogun State. The company alleged that Ogun State violated a 2001 trade treaty by rescinding its rights to a free trade zone in 2016.
The firm took Nigeria to arbitration in the UK in 2018, claiming that federal bodies like the police and immigration were used by Ogun State against them without due process.
Two Zhongshang executives were expelled from Nigeria in 2016, with one allegedly detained and tortured by the police.
This case adds to Nigeria’s legal troubles, following a near $11 billion arbitration decision against the country in favour of P&ID, which was later overturned due to corruption.
However, Zhongshang’s case appears more challenging, with several European courts, including in the UK and Belgium, granting enforcement orders against Nigeria.
Recently, an appellate panel in the U.S. denied Nigeria sovereign immunity over Zhongshang’s recovery efforts.
A consultant with Zhongshang revealed plans to list the Liverpool properties for sale, including on eBay, where the asking price could reach up to $2.2 million for both.
“They said the value of both properties should be around $2.2 million, so they already put together a plan to sell them to willing buyers,” the consultant said under anonymity to discuss client deliberations.
“Some websites like eBay might bring buyers faster than other methods.”
Even though the properties belonged to Nigeria, they were seized because they weren’t listed as Nigerian diplomatic or consular assets.
The Gazette learnt that those currently occupying the properties had no ties to the Nigerian mission in the UK. It was unclear when Nigeria bought the assets, but a senior judge said its officials had regularly rented out both places to guests.
In her June 14, 2024, ruling allowing Zhongshang to seize the buildings from Nigeria, Master Lisa Sullivan of the UK High Court, King’s Bench Division, said: “The properties are currently used for the purpose of leases to residential tenants unconnected with Nigeria and its mission. Those are commercial purposes for the purpose of s13(4) of the SIA and therefore the enforcement against the properties is not barred by state immunity.”
The source said the sale wouldn’t be done in secret because the Nigerian people deserved to know how much all recovered assets were being sold until the full amount had been recovered.
“Zhongshang promised to be transparent with the sale because of the keen public interest of Nigerians in the matter,” the consultant added.