Debt-hit Evergrande sells land for $1B
BEIJING: Embattled property giant China Evergrande has sold land earlier earmarked for its headquarters in the southern technology hub of Shenzhen for $1 billion, according to an official document, as it fights for survival.
The real estate behemoth has been involved in restructuring negotiations after racking up $300 billion in liabilities following Beijing’s crackdown on excessive debt and rampant speculation in the property sector.
The 10,377-square-meter (111,700-square-foot) land in Nanshan district was sold to Shenzhen Anhe No. 1 Real Estate Development Co. for 7.5 billion yuan, according to land transaction records published by the city’s Public Resource Exchange Center last Saturday.
Evergrande has scrambled to offload assets in recent months and its financial situation has worsened considerably since last year.
Its troubles are emblematic of the crisis rippling across China’s massive real estate sector, with smaller companies also defaulting on loans and others struggling to raise cash after Beijing imposed widespread lending curbs in 2020.
Major developers, including Evergrande, have failed to complete projects, sparking mortgage boycotts and protests from homebuyers. China’s banking regulator earlier this month unveiled sweeping measures to support the sector, including credit support for distressed developers to ensure the completion and handover of projects to homeowners.