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Evergrande to Sell Off Interest in Major Hangzhou Project

Evergrande said it would use the proceeds to repay construction fees of 920.7 million yuan for projects in Hangzhou, including the Crystal City Project


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.
Evergrande said in a filing it would use the proceeds of the sale to repay obligations related to the site. Photo: Reuters.

 

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

 

 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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