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Hong Kong Site Sold by Receivers for $637m: China Evergrande

Debt-wracked China Evergrande said in a filing that its plot of undeveloped land near the border in Hong Kong has been sold by receivers for a price of close to $637 million.


China Evergrande shares dropped on Monday after several of employees of its wealth management unit were arrested on Saturday.
Saddled with more than $300 billion in liabilities, the Evergrande Group is undergoing a debt restructuring after it defaulted in late 2021. Photo: Reuters.

 

China Evergrande Group said on Sunday that its plot of undeveloped land in Hong Kong’s Yuen Long district has been sold by receivers for a price of $636.94 million.

The land sale is likely to result in a loss of about $770 million, the Chinese property developer said in a filing to the Hong Kong bourse.

Proceeds from the sale will be used to repay the financial obligations tied to the land plot, it said.

The land plot close to the mainland China border was charged as security for a $520 million financing transaction advanced to Evergrande in January 2021, and was subsequently seized by creditor Oaktree Capital Management in January this year, filings have shown.

Evergrande bought the rural land plot from local developer Henderson Land for $600 million in 2019, and spent around $532 million to convert it into buildable land, according to local media.

Saddled with more than $300 billion in total liabilities, the defaulted Chinese property developer has already seen many of its assets, both in mainland China and Hong Kong, seized by creditors.

Evergrande’s other main asset in Hong Kong, its local headquarters, was taken over by Chinese state-owned China Citic Bank Corp Ltd in September and put on a tender sale last month.

A mansion belonging to company chairman Hui Ka Yan in Hong Kong’s prestigious residential enclave called The Peak was also seized by lender China Construction Bank (Asia) on November 1, records from the Land Registry show.

 

  • Reuters with additional editing by Jim Pollard

 

 

ALSO SEE:

 

China Evergrande Chairman’s $89m Hong Kong Mansion Seized

 

China Evergrande Gets Notice for $4.5bn from Shengjing Bank

 

Governance Fears on China Property Firms as Auditors Quit

 

China Evergrande Selling Hong Kong Office at a Loss – FT

 

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.