China Evergrande will sell its interest in a major Chinese project for 3.66 billion yuan ($575.45 million), according to a Hong Kong stock exchange filing on Wednesday, as the group’s liquidity issues dampen the progress of its projects.
The embattled developer plans to dispose of the state-owned construction land-use right for its Crystal City Project, which is under construction near Hangzhou, and the ownership right to the buildings, according to the filing.
Evergrande said in the filing that it would use the proceeds to repay construction fees of 920.7 million yuan for projects in Hangzhou, including the Crystal City Project, and expects a gain of about 216 million yuan through the stake disposal.
Last week, the world’s most indebted property developer said it would unveil a debt restructuring proposal for its creditors by the end of July after concern about its financial health were renewed by a delay in publishing its annual results.
- Reuters, with additional editing by George Russell