World

Evergrande’s Shenzhen land sold for US$1b after crunch

China Evergrande Group sold land once reserved to build its Shenzhen headquarters in a 7.5 billion yuan ($1 billion) deal that marks the latest disposal by the defaulted property giant.

The 10,377-square-meter (111,700-square-feet) area in Shenzhen’s western Nanshan district sold on Saturday after being put on sale in mid-November, according to a statement by the city’s platform for land transactions. The property has been sitting idle since September 2021. The buyer is mainly owned by a trust subsidiary of Shanghai-listed Industrial Bank Co., separate corporate registry information showed.

Evergrande sits at the center of a credit crisis that has rippled through China’s real estate sector and curtailed growth in the world’s second-largest economy. The most recent sale is among of flurry of asset transfers by the company.

The developer told offshore creditors it plans to present a restructuring proposal as soon as the first week of December to meet a self-imposed deadline, Bloomberg News reported last week.

Evergrande bought the parcel for 5.5 billion yuan in late 2017 when it moved its headquarters to Shenzhen. Its vision was to build the site into a 394-meter-high skyscraper by 2024. The company moved back to Guangzhou, the city where it was founded in 1997, after facing a liquidity shortage, local media reported earlier this year.

The developer also lost control over its main building in Hong Kong. The China Evergrande Centre in Wan Chai was taken over by a receiver and put on sale by a property agency.

In addition, Evergrande returned a plot of land meant for a 80,000-seat football stadium in Guangzhou, before a city-backed investment group bought it. – BLOOMBERG

Dayang Norazhar

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