A total of 39 unsold buildings of the No.2 Island of Ocean Flower Island, developed by the debt-ridden Evergrande Group, will be repurposed, reported Global Times.
The Ocean Flower Island is an artificial archipelago that is backed and built by Evergrande in Danzhou of China’s Hainan province.
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As per a notice published by the local government that has sought public comments, the 39 unsold residential buildings will be converted to a mix of hotel, business and finance, catering, and retail commercial.
Evergrande’s tourism development unit was ordered in January this year to scrap this mega resort project in Danzhou within 10 days.
This mega resort project was claimed to be the world’s largest of its kind, encompassing 434,941.46m2.
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The company was issued an administrative penalty notice by the local authorities due to alleged illegal way of securing the project certificate.
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By GlobalDataResponding to the penalty notice issued, Evergrande Fairyland Group said that Ocean Flower Island is a key project in Hainan that drew approximately $11.2bn (CNY81bn) worth of investment following more than six years of construction.
In September, Evergrande stated that it has resumed construction of a total of 668 housing projects that were delayed as against 38 projects that remain shelved.
According to a July report of Chinese news portal guancha.cn, Evergrande sold many of its subsidiaries, five real estate projects and non-core assets for CNY45.8bn over the last year to wade through the financial problems.
In a filing on 6 November, the company stated that receivers sold a plot in Yuen Long, Hong Kong Special Administrative Region for $637m.
Proceeds from the sale will be utilised to repay the company’s financial obligations associated with the project.
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Image: The 39 unsold residential buildings are located at Ocean Flower Island. Credit: Hands off my tags! Michael Gaida from Pixabay
