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Two More China Evergrande Assets Taken Over by State Firms

At least two more developments by China Evergrande Group have been taken over by state-owned enterprises (SOEs) in the past few weeks, corporate registry records show


The Evergrande Centre in Shanghai
Evergrande has lurched from one crisis to another since its financial woes became public in 2021. Photo: AFP

 

At least two more developments of China Evergrande Group have been taken over by state-owned enterprises (SOEs) in the past few weeks, corporate registry records showed.

The takeovers came as the developer is struggling to complete projects amid the more than $300 billion in liabilities it holds.

The world’s most indebted property developer on January 26 transferred its control over a theme park called Evergrande Fairyland in the Nansha district of Guangzhou to Minmetals International Trust Co, according to the records.

Separately, on February 11 Evergrande withdrew its stake in a residential development in Dongguan in Guangdong province, which is now under the control of China Everbright Group.

The records do not show the monetary amount involved in the deals.

Local media first reported about the change of control of the assets.

Beijing is encouraging SOEs and large property developers to acquire assets from cash-strapped real estate firms to ease liquidity pressure, and has made it easier for them to raise financing for the deals.

Minmetals Trust last month bought the equity in two projects from Evergrande for a total of 80 million yuan ($12.67 million), in a rare case where a trust company took over assets from a distressed developer.

 

• Reuters with additional editing by Jim Pollard

 

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China Evergrande Debt Crisis: Five Developers on the Brink

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China Builders And Home Suppliers Warn Of Evergrande Hit

 

 

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.