Jakarta, CNN Indonesia —
a luxury home at Gargantuan Residence in Los Angeles, California, United States of America dubbed The One will be sold at a price of US $ 500 million or equivalent to Rp. 7.12 trillion (exchange rate of Rp. 14,259 per dollar).
This residence was sold after the owner failed to pay a debt of US $ 100 million or equivalent to Rp. 1.4 trillion.
Project developer Nile Niami, in his Instagram post, said the 105,000-square-foot residence has 7 swimming pools, a garage for 50 cars, a cellar for 10,000 wines and even has a private nightclub.
Although dubbed as the most expensive residence in the world, The One actually experienced several obstacles, complaints, and now had to be forced to be sold by the court to cover the existing debt.
Niami borrowed US$82.5 million from Hankey Capital in 2018 to build a house. In March, Hankey Capital issued a foreclosure warning against the property for sale.
According to court documents cited CNN.com, Thursday (16/9), Niami has 90 days to pay or renegotiate its debt which has grown to more than US$110 million.
Until July, there had been no debt payment transactions so the house was forcibly confiscated by the court. The One’s beneficiary, Theodore Lanes of Lanes Management Services, is tasked with calculating debts and sales against the property, as well as processing debt payments to borrowers and creditors.
Lanes Management Services will not provide services until the occupancy certificate of the property is issued. The permit requested to build a commercial catering kitchen area was refused and had to be vacated.
Another problem faced is the insurance which expires at the beginning of this year. The One also has US$2 million in arrears in taxes and invoices to vendors.
In an email to CNN.com, Lanes says it’s a very complex property issue with other problems that may arise. Lanes’ focus is now on resolving insurance issues and developing a timeline for securing occupancy certificates to maximize the value of the property.
So far, Hankey Capital and Nile Niami have yet to comment on this case.
The One itself was built almost a decade on the hills of Bel Air with views of the Bay of Los Angeles. This property has 20 rooms, including 8 rooms for staff and 3 rooms for guests. It is estimated that this house has 6 elevators, a library, a smoking room, and a candy room.
In addition, this property has 4 bowling rooms, a movie theater for 50 people, a flat grass court, a fitness center and gym, a beauty salon, a drink bar, and a tennis court.
(fry / sfr)
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