Embattled property developer China Evergrande Group has shifted stakes in multiple developments to partners in a move aimed at relieving some of its debt burden, reports Caixin. An Evergrande unit in Kunming, Yunan province, transferred its entire stake in a residential and commercial complex project in the city January 13 to Minmetals International Trust at a valuation of RMB 50 million ($7.87 million).
A similar stake transfer was filed January 12 between an Evergrande unit in Foshan, Guangdong province, and Minmetals Trust. “The stake transfers were not asset sales but using the stake transfer to repay debts to previous partners,” an Evergrande employee said. The deals didn’t bring any revenue to the company.
The transfers also aim to ensure the delivery of the projects as Minmetals Trust will continue their development, the person said.