China Evergrande Group said its creditors have sold a plot of undeveloped land in Hong Kong’s Yuen Long intended for a residential development project for $637 million, according to an exchange filing, reports Bloomberg.
Evergrande expects to record a loss of approximately $770 million for the transaction. Proceeds will be used to repay the financial obligations in relation to the project, the Sunday filing said.
The troubled developer announced in January that the plot of land was used as security for a financing transaction worth $520 million. The project was seized by Oaktree Capital after Evergrande defaulted on a loan against which Oaktree had security, according to a Financial Times report.