Struggling property developer China Evergrande Group announced it will sell its Crystal City project in the eastern city of Hangzhou to a pair of state-owned enterprises for RMB 3.66 billion ($575 million) as the embattled developer’s debt issues slow progress of its projects, reports Retuers. The firm is selling the land-use and building ownership rights for the project, which is under construction, to Zhejiang Zhejian Real Estate Group and Zhejiang Construction Engineering Group, Evergrande said in a filing.
It will use the proceeds to repay construction fees of RMB 920.7 million owed to Zhejiang Construction Engineering and the rest for its own general working capital. The deal is expected to post a gain of about RMB 216 million.
Saddled with over $300 billion in liabilities, Evergrande has been struggling to repay suppliers, creditors and complete projects. State-owned enterprises have stepped in to help with the debt restructuring process and taken over some of its assets to quell market concerns about a disorderly collapse.
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