Companies

Debt row rumbles on at Jianwai SOHO

(China Daily)
Updated: 2010-07-30 11:56

Residents in Jianwai SOHO in Beijing have finally won an almost two-year fight with a property management company, but still must deal with debts accrued by the company during that time.

A new property management company started working at Jianwai SOHO at 9 am on Wednesday. Some cleaning and security companies who had been subcontracted by a previous property management company blocked one of the complex's garages.

The new property management company, Beijing Jinrong Property Management Company, was selected through competitive biding on July 16 and is owned by Pan Shiyi, one of China's best-known developers. Pan is also the developer of Jianwai SOHO.

"We will establish a team to clear up the debts and handle the transition to the new property management company," said Zhang Mingwei, a member of the residents' committee and owner of a 289-sq-m apartment in the area.

Zhang said the residents' committee finished a meeting on Thursday morning and, along with both past and previous property management companies, will establish a debt management team.

He said that according to the contract between the residents' committee and the former property management company, the former and new property management companies will complete their transition in a month.

"The confusion over the debt, and who owes how much to whom, is not surprising, given the large sums involved and the confusion about switching companies," said Zhang.

The former property management company, Binzhi Property Management Company, started managing Jianwai SOHO temporarily in October 2009 because the residents' committee dismissed Saite Property Management Company, which had managed Jianwai SOHO for almost eight years since 2001.

Related readings:  Dueling elections at Jianwai SOHO  Property bubbles still a risk for China, says S&P official  Property tightening policies to continue  Shanghai warns banks of risky property loans

According to the residents' committee, Jianwai SOHO residents still need to pay about 50 million yuan to Saite Property Management Company.

Cleaning and security company employees who worked at Jianwai SOHO gathered in the complex's eastern underground garage on Wednesday morning and blocked it for half an hour, Beijing News reported.

"If the former property management company leaves and the new company will not pay us what we are owed, I do not know how we will be able to pay wages to our staff," a manager with a cleaning company surnamed Ma said.

Ma said the property management company owes his company 900,000 yuan and that three other cleaning companies that worked in the eastern area of Jianwai SOHO also have not been paid for almost two years. Binzhi Property Management Company refused to comment.