Evergrande : Opened the 3rd cause of default, extinguishing the dream of creditors-investors

REUTERS/Tyrone Siu/File Photo

Evergrande’s financial situation continues to deteriorate. When the 3rd payment default, the source provided the same information that This was caused by a buyer withdrawing from the purchase of assets in Hong Kong.

October 15, 2021 Reuters Reported that the failure to negotiate the sale of the headquarters building in Hong Kong It was another defeat for China. Evergrande Trying to sell some assets to pay off debts worth more than $ 300 billion (about 9 trillion baht) and this failure made the Chinese real estate giant. Must default on payment for the 3rd time

Yue Xiu, a company located in Guangzhou city. south of china Almost reached an agreement to buy the China Building. The 26-storey Evergrande Center is located in the Wan Chai district of Hong Kong. This past August, the building is Evergrande’s headquarters in Hong Kong.

Such an agreement had to stumble. After Yue Xiu’s board objected. By citing the reason for the unresolved debt problem of Evergrand This may create a number of difficulties. until it interferes with various transactions

In the past few months Evergrande China’s top-selling real estate developers try to raise money by selling assets ranging from real estate to company shares. both in mainland China and Hong Kong

However, neither Evergrand nor Yue Xiu had any comment on the matter. The source declined to reveal his identity.

Evergrande bought this harbor building. which is located in the commercial district of Hong Kong Covering an area of ​​3.45 square feet from a subsidiary of Chinese Estate Holdings at a price of USD 1,610 million (approximately 53,661 million baht) in 2015.

Evergrande’s purchase of the aforementioned building It set a record for buying a commercial building in Hong Kong with the highest price per square foot at the time. It also made Evergrande one of the largest real estate owners in Hong Kong.

One source said Evergrand has invested more than HK$10 billion in collateralized financial products, meaning that Evergrand will have a limited amount of cash to pay off debt. This is the money from the sale of this building only.

Evergrande’s future

The source also revealed that Ye Xiu’s board It focuses on real estate development in China’s Greater Bay Area (GBA) in the Guangdong-Hong Kong-Macao Special Economic Zone and has offices in Hong Kong. I started to worry about the uncertainty of this deal. At a time when Evergrand’s future remains unclear

The same news source also provided information that At the end of August, Yue Xiu was also advised by the authorities in Guangzhou. to suspend the purchase of the said office building

Another source said the deal was suspended in late August. Because the Guangzhou City Government wants to check Evergrande’s financial situation first. To understand how to use the proceeds from the sale of assets.

However, the Guangzhou government did not respond to reporters’ questions on the matter.

Both sources said the same information. Evergrande is currently in final talks to sell its 51% stake in the asset management company. Evergrande Property service to Hopson Development In a deal that will bring about 20 billion Hong Kong dollars (about 85,868 million baht).

One of the sources said Both sides are finalizing the details. including financing for buyers

When a reporter asked about the details of the deal Hopson said You have to wait for the official announcement first. so they can express their opinions.

If Evergrande sells its shares to Hopson, it succeeds. The deal will become Evergrand’s largest asset sales deal.

But this real estate giant still has many businesses left. This includes bottled water companies. and electric vehicle manufacturing companies

In addition, Evergrande is in the process of selling the Guangzhou FC football stadium. and multiple housing projects for Guangzhou City Construction Investment Group, Reuters reported last month.


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