A Hong Kong-owned business has been ordered to sell a Sydney mansion which Treasurer Joe Hockey says was purchased in breach of foreign investment rules. The $39 million Villa del Mare property at Point Piper was bought last year by Australian company Golden Fast Foods, which is owned by a Hong-Kong based property group.
Mr Hockey said the company failed to seek approval from the Foreign Investment Review Board in purchasing the mansion and he ordered it be sold. Golden Fast Food have 90 days to sell the property. Failure to sell will see the matter referred to the Commonwealth Department of Public Prosecutions.
This action by Hockey sends a strong message to foreign house buyers in Australia that the govt is serious about enforcing the law and maintaining the integrity of the foreign investment system that has not prosecuted anyone for breaching the rules since 2006.
Last week the Australian govt signalled a series of changes to foreign investment rules.