China Evergrande owes $28 mln for Changchun land, city govt says

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The brand of China Evergrande is seen at exterior China Evergrande Centre constructing in Hong Kong, China September 23, 2021. REUTERS/Tyrone Siu/File Photograph

BEIJING, Oct 14 (Reuters) – Closely indebted property developer China Evergrande Group owes the equal of $28 million for land within the northeastern metropolis of Changchun it purchased in June, municipal authorities mentioned.

Evergrande purchased the land by native developer Changchun Jitao Actual Property Improvement Co for 601 million yuan ($93 million) in an public sale on June 17, a part of a collection of coordinated gross sales by 22 of China’s greatest cities.

Evergrande, which didn’t reply to a Reuters request for remark, has been strapped for money with over $300 billion in liabilities.

It did not pay almost $150 million value of coupons on three bonds due on Monday, after lacking two different bond funds in September.

The native developer paid a deposit of 120.3 million yuan however has but to completely make the following spherical of fee equal to 50% of the transaction value, the Changchun Pure Sources and Planning Bureau mentioned in an announcement to Reuters when requested to verify the sale.

Changchun Jitao Actual Property was required to pay the 50% inside 30 days of the sale, however has solely paid 20%, the bureau mentioned in a faxed assertion.

It nonetheless owes about 180 million yuan ($28 million), Reuters calculations present.

Changchun Jitao Actual Property has been urged to make the 50% fee in full, the bureau mentioned in an announcement dated Oct. 11.

Fee for the remainder of the deal isn’t due but, it mentioned.

The plot of land, measuring 116,519 sq m (28.8 acres), is the one piece of land that Evergrande has purchased this 12 months in auctions carried out by 22 cities, which embrace Beijing and Shanghai, in accordance with a Reuters evaluation of public notices.

($1 = 6.4364 Chinese language yuan renminbi)

Reporting by Ryan Woo; enhancing by Jason Neely


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