Evergrande’s Hong Kong headquarters has been seized by a lender after the struggling Chinese property developer defaulted on a loan and twice failed to sell the building, according to four people with knowledge of the matter, reports the Financial Times. The lender, whose identity has not yet been confirmed, informed Evergrande earlier this week that it had appointed a receiver to take charge of the property that is valued at $1.2 billion and force a sale, the people said.
They added that the lender had security over the China Evergrande Centre—a 26-storey tower near the city centre of Hong Kong island—which allowed it to take charge of the asset.
One person familiar with the situation said that Evergrande had in the past pledged the building in exchange for loans from a consortium of lenders led by China Citic Bank International, the Hong Kong subsidiary of the Chinese state-owned bank.
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