In a move that has raised eyebrows worldwide, Xu Hang, co-founder of Chinese medical device manufacturer Mindray Medical, has embarked on a real estate buying spree totaling $250 million. While not the stereotypical image of an extravagant billionaire, Xu’s recent acquisitions have caught the attention of real estate markets globally.
Rapidly Expanding Wealth
Xu’s foray into luxury real estate has surprised many, given his background in the medical devices industry. However, the COVID-19 pandemic proved highly lucrative for Mindray. Co-founder Li Xiting’s net worth reportedly skyrocketed by $1 billion monthly due to soaring demand for ventilators in 2020.
Xu’s personal wealth has similarly surged in recent years, from $1.8 billion in 2018 to a peak of $19.5 billion in 2021, making him Shenzhen’s wealthiest individual. According to the Bloomberg Billionaire Index, his current fortune stands at $12.1 billion, making him the fourth-richest person in the global healthcare sector. Despite his immense wealth, Xu maintains a relatively low profile compared to other Chinese tycoons like Alibaba Founder Jack Ma.
A Buying Spree, But With a Purpose
The buying spree, allegedly orchestrated by Xu’s wife, Gu Fang, began in October 2022 with the purchase of a $55 million compound in California’s Newport Coast. Subsequent acquisitions included a $55 million Beverly Hills compound owned by Mark Wahlberg and a $40 million penthouse in New York’s Deutsche Bank Center formerly owned by billionaire Stephen Ross.
However, the most notable purchase to date is a $107 million mansion in Hong Kong’s prestigious Peak District, acquired just a few months ago. This acquisition, made amidst a slump in Hong Kong’s real estate market, has raised questions about the motivations behind Xu and Gu’s real estate investments.
Despite the extravagant purchases, Xu and Gu managed to secure steep discounts on the original asking prices of each property, totaling a $126 million markdown. While the scale of the acquisitions may seem extravagant, Xu’s keen timing and ability to capitalize on favorable market conditions have undoubtedly contributed to his success in the real estate arena.
Questions remain about Xu and Gu’s motivations and the potential impact of their acquisitions on global real estate markets. Observers are closely monitoring their future moves, eager to understand the broader implications of this real estate portfolio expansion.
Mindray Medical’s Expansion
Established in 1991, Shenzhen Mindray Bio-Medical Electronics has emerged as a notable player in the global medical equipment market. During the COVID-19 pandemic, the company garnered attention for supplying medical devices, including ventilators, to over 100 countries and regions.
Over the past three decades, Mindray invested approximately 10% of its revenue into research and development, leading to cutting-edge products. In one example, the company introduced China’s first self-developed multi-parameter patient monitor. Mindray adheres to rigorous standards set by regulatory authorities such as the U.S. Food and Drug Administration to ensure product safety and efficacy.
Since its inception, Mindray has continuously expanded its international presence, demanding higher standards from itself to meet the requirements of advanced economies like Europe and the United States. Today, Mindray’s products and services are widely adopted in over 190 countries and regions, spanning nearly 110,000 medical institutions worldwide, including top hospitals in the United States and Europe.
