Joe Hockey orders sale of $39m Sydney mansion

4 Mar 2015,

(Translation of this article appears in Arabic section)

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.

"They [Golden Fast Foods] have 90 days to sell the property," he told Parliament.

"We are very serious about enforcing the law.

"We are very serious about integrity in our foreign investment system."

Mr Hockey and Prime Minister Tony Abbott last week announced a raft of changes to laws that govern the ability of foreign buyers - temporary residents and non-residents - to purchase Australian residential property.

Unveiling the key contents of a consultation paper, Mr Hockey said the proposed measures were designed to restore confidence in a foreign investment review system that had not prosecuted anyone for breaching the rules since 2006.

"We welcome foreign investment. It is hugely important," Mr Hockey said.

"But it is vitally important that every Australian knows that the rules relating to foreign investment are going to be enforced."

If the company does not sell the mansion within 90 days, the matter may be referred to the Commonwealth Department of Public Prosecutions.