HONG KONG (Reuters) -China Evergrande Group said on Sunday its plot of undeveloped land for residential development in Hong Kong’s Yuen Long district has been sold by its receivers for $636.94 million.
The land project is expected to result in a loss of about $770 million, the Chinese property developer said in a filing to the Hong Kong bourse. The sale proceeds will be used to repay the financial obligations tied to the land plot, it said.
The land plot close to the mainland China border was charged as security for a $520 million financing transaction advanced to Evergrande in January 2021, and was subsequently seized by creditor Oaktree Capital Management in January this year, filings have shown.
Evergrande bought the rural land plot from local developer Henderson Land for $600 million in 2019, and spent around $532 million to convert it into buildable land, according to local media.
Saddled with more than $300 billion in total liabilities, the defaulted Chinese property developer has already seen many of its assets, both in mainland China and Hong Kong, seized by creditors.
Evergrande’s other main asset in Hong Kong, its local headquarters, was taken over by Chinese state-owned China Citic Bank Corp Ltd in September and put on a tender sale last month.
A mansion belonging to company chairman Hui Ka Yan in Hong Kong’s prestigious residential enclave called The Peak was also seized by lender China Construction Bank (Asia) on Nov. 1, records from the Land Registry show.
(Reporting by Donny Kwok and Clare Jim; Editing by Hugh Lawson and Ana Nicolaci da Costa)