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Wuhan Officials Reclaim Land From Debt-Laden China Evergrande

Jianxia district officials reclaimed over 134 hectares (332 acres) of land previously held by a unit of the debt-laden developer


A Chinese municipal district in Wuhan said this week it has taken back 134,500 hectares (over 332 acres) of land formerly held by a unit of debt-laden developer China Evergrande.
The Evergrande Centre in Shanghai. Photo: Hector Retamal, AFP.

 

The debt-laden developer China Evergrande has suffered another blow with a municipal district in Wuhan saying this week it has reclaimed over 134 hectares (332 acres) of land previously held by a unit of the group.

The government of Jiangxia district in the central city of Wuhan said it took the land as it had received not payment for the 12 blocks.

Jiangxia officials retrieved its land-use rights over the undeveloped sites at the Evergrande Technology Tourism City on November 16, according to a statement by the district’s Planning and Natural Resources Bureau.

China Evergrande unit Wuhan Baden City Investment Co Ltd has held the land as developer of Evergrande Technology Tourism City.

A right to use land is the Chinese equivalent of ownership, since title is always ultimately held by the state.

China Evergrande, which is languishing under a massive debt burden estimated at more than $300 billion, has been at the centre of a deepening property debt crisis that has seen multiple developers default on offshore debt obligations over the past year, leaving many negotiating debt restructuring.

The land parcels taken back by Jiangxia comprised nine residential sites, two commercial and one for mixed development, the filing, dated November 18 showed. It gave no further details.

Evergrande declined to comment. Its shares have been suspended since March.

 

  • Reuters with additional editing by Jim Pollard

 

 

ALSO SEE:

 

China Evergrande HQ Land up For Sale at $1 Billion

 

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 and has a family in Bangkok.

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