Struggling property developerChina Evergrande Groupis set to be getting an exemption from a key restriction for new apartments being sold in the southern metropolis of Guangzhou, as the company grapples with a mountain of maturing debt, reported Caixin.
The restriction in question says that only companies can purchase apartments developed on land designated for commercial development which was purchased after March 30, 2017.
Many city and other regional governments have rolled out similar types of measures in recent years to cool their local property markets. Such restrictions are also aimed at discouraging developers from building residential-type projects on land earmarked for commercial use, said Caixin.
The exemption appears to be a one-off for Evergrande, which is based in the nearby mega-city of Shenzhen, also in Guangdong province and on the border with Hong Kong. The company’s total debt pile exceeds $120 billion, about $5.8 billion of which is maturing in the next two months, data compiled by Bloomberg show.