China Evergrande Group has vowed to restart construction of all remaining suspended property projects by the end of this month, reported Financial Times.
The developer plans to restart construction of 38 remaining projects by the end of September and speed up 62 recommenced projects to “normal level”.
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This move is aimed at pacifying countrywide mortgage boycott.
Out of Evergrande’s 706 pre-sold projects across the country that require to be completed and delivered to homebuyers, construction has resumed at 668 projects.
At a weekly meeting, China Evergrande chair Hui Ka Yan said: “We have to work hard and put our nose to the grindstone to ensure the delivery of projects. Only in this way can we satisfy the homebuyers, resume sales, resume operations, repay all types of debts and get out of the predicament.”
Evergrande has been at the focus of a liquidity crisis ailing the country’s property industry. Cash-strapped developers, who are not able to sell more debt, are forced to halt projects, pushing thousands of homeowners to stop making mortgage payments on incomplete properties as a mark of protest.
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By GlobalDataTo prevent a wider economic consequence from the property crisis, the authorities in China have rolled out loan schemes to support cash-starved developers.
Last month, Bloomberg reported that China Evergrande Group would receive a refund of $818m from Guangzhou following the cancellation of contract to construct a football stadium.
The refund amount would be earmarked into a project escrow account.
Evergrande had stated in a regulatory filing that the funds would be used to clear debts associated to the Guangzhou Evergrande Football Stadium contract.
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Image: The builder plans to restart construction of 38 remaining projects by the end of September . Credit: Andreas H. from Pixabay .
