Debt-laden Chinese developer Evergrande Group is divesting its Hong Kong headquarters through a tendering process, reported Reuters, citing a source aware of the development.
The tendering process ended on 28 July and local developer CK Asset confirmed to the news agency that it had bid for the headquarters property. ‘
Evergrande, which has liabilities running over $300bn, has been trying to divest its 26-storey China Evergrande Centre in Wan Chai district of Hong Kong following the collapse of a potential $1.7bn deal late 2021 as part of its efforts to raise funds from the asset disposal.
Proceeds from the sale of the Hong Kong headquarters would be used to repay offshore creditors as part of the debt restructuring plan that is expected to be announced this week, sources have said.
Many developers in Hong Kong have submitted tenders, according to the source, while the participation was little from China’s state-owned firms.
Recently, Evergrande hired real estate services group Cushman & Wakefield as the exclusive agent to sell the 345,000ft2 office building, reported the Financial Times, citing sources.
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By GlobalDataThis divestment is expected to draw a much lower figure this time, nearer to around $1.15bn.
In October 2021, Reuters reported the state-owned Yuexiu Property pulled out of a $1.7bn deal to acquire China Evergrande Center.
In December 2021, Evergrande Group reportedly resumed construction of most of its stalled housing projects.
Almost 92% of the company’s projects recommenced as against around 50% at the beginning of September 2021.
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Image: Many developers in Hong Kong have submitted tenders for the building. Credit: Hands off my tags! Michael Gaida from Pixabay.