China Evergrande says Hong Kong land plot sold by receivers for $637 million
Reuters
Published Nov 06, 2022 07:47AM ET
Updated Nov 06, 2022 09:11PM ET
HONG KONG (Reuters) -China Evergrande Group said on Sunday its plot of undeveloped land for residential development in Hong Kong's Yuen Long district has been sold by its receivers for $636.94 million.
The land project is expected to result in a loss of about $770 million, the Chinese property developer said in a filing to the Hong Kong bourse. The sale proceeds will be used to repay the financial obligations tied to the land plot, it said.
The land plot close to the mainland China border was charged as security for a $520 million financing transaction advanced to Evergrande in January 2021, and was subsequently seized by creditor Oaktree Capital Management in January this year, filings have shown.
Evergrande bought the rural land plot from local developer Henderson Land (OTC:HLDCY) for $600 million in 2019, and spent around $532 million to convert it into buildable land, according to local media.
Saddled with more than $300 billion in total liabilities, the defaulted Chinese property developer has already seen many of its assets, both in mainland China and Hong Kong, seized by creditors.
Evergrande's other main asset in Hong Kong, its local headquarters, was taken over by Chinese state-owned China Citic Bank Corp Ltd in September and put on a tender sale last month.
A mansion belonging to company chairman Hui Ka Yan in Hong Kong's prestigious residential enclave called The Peak was also seized by lender China Construction Bank (OTC:CICHF) (Asia) on Nov. 1, records from the Land Registry show.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.