China Evergrande Group, one of China’s largest property developers, listed more than 200 commercial projects for sale in a major move to pare back assets, sparking concerns over its liquidity, reported Caixin.
But an Evergrande spokesperson told Caixin that the sales are normal business operations and in line with the company’s long-term strategy, rather than a one-off sale. The company plans to sell offices, hotels and commercial sites with space larger than 1,000 square meters across the country, the spokesperson said.
An Evergrande manager said the company will shift to property management services for the projects after the sales. The massive asset sale drew market attention amid rising concerns over Evergrande’s debt overhang. Moody’s in late June downgraded the company’s credit outlook to “negative,” citing debt concerns.
By the end of 2019, Evergrande had debt totaling RMB 799.9 billion ($115 billion), equivalent to nearly 84% of total assets. Among them, RMB 372 billion of debt would be due within one year.