Another attempt to sell China Evergrande's Hong Kong head office has reportedly failed, adding further pressure to the debt-ridden property developer.
China Evergrande's Hong Kong headquarters has failed to complete another tender sale because the offer prices and terms did not meet requirements, according to a «Reuters» report citing unnamed sources.
This marks yet another failed attempt after Evergrande was reportedly looking to sell the 27-storey tower in July but only attracted a few bids, which were below HK$10 billion ($1.3 billion). In 2021, a potential $1.7 billion deal with Yuexiu Property also failed after the Chinese state-owned firm pulled out from its own proposal.
Asset-Backed Loan
Evergrande’s Hong Kong office has been pledged against a loan of HK$7.6 billion from lenders led by the Hong Kong subsidiary of China Citic Bank.
According to the report, the lenders, which appointed a receiver in September to seize the asset, may put the office on sale again when market conditions are more stable than in the second half of 2022.
Evergrande continues to face pressures to shrink its gargantuan liabilities which total more than $300 billion.
