Chinese Investors Take Over Nigerian Guest Houses in Liverpool, Set to Auction on eBay for $2.2 Million

Chinese investment group Zhongshang Fucheng Industrial Investment Ltd. has seized two Nigerian-owned residential properties in Liverpool, UK. The firm, seeking to recover up to $70 million from an unresolved 2021 arbitration award, plans to auction the properties on eBay for an estimated $2.2 million.

The properties in question—15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road—were taken over in June 2024 following a British court order that allowed Zhongshang to confiscate Nigerian assets in the UK. This action stems from Nigeria’s failure to settle a 2021 arbitration judgement, which includes a principal amount of $55.7 million, interest of $9.4 million, and additional costs of £2.86 million.

The dispute originated from a 2018 arbitration claim by Zhongshang against Ogun State, Nigeria, for breaching a 2001 trade treaty by revoking its rights to a free trade zone. The case also involved allegations of wrongful detainment and torture of Zhongshang executives in Nigeria.

This latest development comes on the heels of Nigeria’s near-miss with a separate $11 billion arbitration claim from the P&ID consortium, which was overturned due to bribery and corruption revelations. Unlike the P&ID case, Zhongshang’s enforcement actions have been recognized by courts across Europe, and recent efforts to secure assets in the US have been unsuccessful.

According to a Zhongshang consultant, the company is set to list the Liverpool properties on eBay to expedite the sale. The properties are not classified as diplomatic or consular assets but rather commercial, which allowed their seizure.

Master Lisa Sullivan of the UK High Court affirmed in June 2024 that the properties’ use for residential leases, rather than diplomatic purposes, justified the enforcement action. Zhongshang has pledged transparency in the sale process to keep the Nigerian public informed about the asset recovery.