China’s debt-laden property developer Evergrande Group has reportedly resumed construction of most of its stalled housing projects.
Almost 92% of the company’s projects have recommenced as against around 50% at the beginning of September.
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The move comes after the country’s real estate regulator told Xinhua news agency that the government will address risks associated with the overdue delivery of residential properties by some builders.
Evergrande Group chairman Xu Jiayin has committed to deliver 39,000 units of properties this month.
The property developer has liabilities of over $300bn.
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Reuters reported Jiayin as saying: “With the company resuming construction work at full steam, the group plans to deliver 115 projects in December.
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By GlobalData“With five days left this month, we must go all out to ensure we meet the goal of delivering 39,000 units this month.”
The regulatory authorities have been pushing the firm to deliver apartments and pay its construction workers.
A risk panel has been launched to guide Evergrande’s overhaul. It includes officials from its home province of Guangdong.
Bloomberg reported Jiayin as saying at a company meeting: “As long as we do a good job in restarting work, production and construction, we’ll be able to deliver houses to buyers, resume sales and operations and pay off debts.”
China’s central bank said it would protect home buyers’ legal rights.
China housing and urban-rural development minister Wang Menghui told the state TV that the government would consider keeping prices of the land and houses stable to ensure there is reasonable demand.
Earlier this year, Evergrande terminated a deal to sell a stake of 50.1% in its Evergrande Property Services to Hopson Development as the latter failed to meet the prerequisite to make a general shares offer in the unit.
This deal would have been worth $2.58bn (HK$20.04bn).
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Evergrande seeks to reduce its debts of over $300bn. Credit: Hands off my tags! Michael Gaida from Pixabay.
