China Evergrande Sells Stake in Hangzhou Real Estate Project Worth 695.1 Billion Yuan

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Hyunjung] China’s real estate developer Evergrande, which is in default, is selling its stake in a real estate project covering 223,000㎡.

On the 30th, Evergrande submitted documents to the Hong Kong Stock Exchange stating that it will sell a stake worth 3.66 billion yuan (approximately 695.1 billion KRW) in the Crystal City project under construction in Hangzhou. The stake includes ownership of the buildings and land use rights.

Evergrande is China’s largest major real estate developer but has over 1.97 trillion yuan in debt after failing to pay bond interest last year. It recently defaulted by missing the interest payment dates on three overseas dollar bonds.

The proceeds from the stake sale will be used to repay 960 million yuan owed to Zhejiang Zhejen Real Estate Group. Zhejiang Zhejen Real Estate Group is one of the two buyers of this stake and is general working capital. The other buyer is a state-owned real estate group.

Earlier, on the 22nd, Evergrande disclosed on the Hong Kong Stock Exchange that its subsidiary Evergrande Property discovered late that 13.4 billion yuan in deposits, which had been provided as collateral to a third party during the preparation of last year’s business report, had been forcibly transferred to creditor financial institutions. Evergrande Property is a real estate management specialist company and had been considered one of Evergrande’s “prime assets,” but unexpected insolvency issues have emerged there.

This content was produced with the assistance of AI translation services.