Evergrande’s Hong Kong headquarters has reportedly been seized by a bank after previously failing to sell the 26-story tower twice.
China Evergrande has been informed by an unnamed lender that a receiver has been appointed to seize its 26-story Hong Kong headquarters, according to a «Financial Times» report citing unnamed sources, with the aim of forcing a sale.
The troubled property developer previously pledged the building in exchange for loans from a consortium of lenders led by China Citic Bank International, the Hong Kong subsidiary of state-owned bank China Citic Bank, the report added.
Failed Sale
Evergrande has previously attempted to sell its Hong Kong headquarters twice, once in a $1.7 billion deal last October with Chinese state-owned Yuexiu Property which pulled out, and a second time in July that attracted several bids, including from Li Ka-shing’s CK Asset Holdings.
According to a separate «Reuters» report, there were around three bidders each offering less than HK$10 billion ($1.27 billion) which was considered too low to accept for Evergrande.
Evergrande continues to grapple with its more than $300 billion of debt amid an ongoing property crisis in China that has seen defaulting developers and mortgage boycotts over unfinished housing projects. Earlier this year, Evergrande’s had two assets for a development site in Hong Kong also seized, this time by US alternatives manager Oaktree Capital after it defaulted on loans that totalled around $1 billion.
