{"id":331224,"date":"2022-09-11T21:42:31","date_gmt":"2022-09-11T13:42:31","guid":{"rendered":"https:\/\/www.mingtiandi.com\/?p=331224"},"modified":"2022-09-12T22:25:43","modified_gmt":"2022-09-12T14:25:43","slug":"lenders-move-to-seize-evergrandes-hong-kong-hq","status":"publish","type":"post","link":"https:\/\/www.mingtiandi.com\/real-estate\/finance\/lenders-move-to-seize-evergrandes-hong-kong-hq\/","title":{"rendered":"Lenders Move to Seize Evergrande\u2019s Hong Kong Headquarters\u00a0"},"content":{"rendered":"
\"China

Evergrande’s Hong Kong headquarters may have a new owner soon<\/p><\/div>\n

China Evergrande\u2019s struggle to pay its debts produced more drama this past week as lenders to the world\u2019s most indebted developer took steps to seize its Hong Kong headquarters.<\/p>\n

The unidentified lenders to Shenzhen-based Evergrande have appointed a receiver to sell the group\u2019s 26-storey Wan Chai office tower, according to market sources who spoke with Mingtiandi, confirming an earlier report by Reuters<\/a>.<\/p>\n

\"\"<\/a><\/p>\n

The office block in Hong Kong\u2019s Wan Chai district, which Evergrande purchased for a record $1.61 billion in 2015<\/a>, had been pledged to a group of lenders led by China CITIC Bank International in return for a loan, according to a report by the Financial Times<\/a>, which first reported the news.<\/p>\n

Evergrande\u2019s creditors have hired US restructuring specialist Alvarez & Marsal to liquidate the property as efforts by the developer to market the asset at around HK$9 billion<\/a> ($1.15 billion) have struggled to reach a deal.<\/p>\n

Involuntary Portfolio Reduction<\/h3>\n

CITIC Bank notified investors last September, without giving details, that its loans to Evergrande were pledged against valuable security, according to the FT.<\/p>\n

\"Xu

Evergrande chairman Xu Jiayin is seeing more of his assets fly away (Getty Images)<\/p><\/div>\n

Evergrande has seen a number of assets stripped from its grasp in recent weeks with a mainland court having auctioned off the developer\u2019s remaining 14 percent stake in Shenyang\u2019s Shengjing Bank<\/a> earlier this month for RMB 7.3 billion ($1.1 billion) after the company lost an arbitration case<\/a> brought by creditors.<\/p>\n

In August the city of Guangzhou took over a football stadium<\/a> that Evergrande was building in the capital of Guangdong province in return for RMB 5.52 billion in compensation, with Evergrande recording a RMB 1.26 billion loss on the forfeit after failing to complete the project.<\/p>\n

Evergrande had promised to present a plan for restructuring its estimated $300 billion in debts by the end of July, and since it failed to present a detailed scheme, has seen a series of moves by creditors to advance debt resolution unilaterally.<\/p>\n

\"\"<\/a><\/p>\n

In July, Li Ka-shing\u2019s CK Asset Holdings was said to have placed a bid for the tower after a reported attempt last year to sell the largest single property asset in Evergrande\u2019s portfolio to state-owned Yuexiu Property for about $2 billion<\/a> failed to result in a transaction.<\/p>\n

The July tender for the property, which was managed by brokerage firm Cushman & Wakefield, was set to end on 28 July, however, the firm is reported to still be marketing the asset on Evergrande\u2019s behalf.<\/p>\n

Picking Up the Pieces<\/h3>\n

CITIC, which was founded in 1979 and ranks as China\u2019s largest conglomerate, has a track record of mopping up developer miscues.<\/p>\n

In July, the state-run group announced that it had taken over stakes in five Kaisa Group projects<\/a> in Shenzhen worth more than RMB 60 billion ($8.9 billion) as part of a debt restructuring.<\/p>\n

\"\"<\/a><\/p>\n

CITIC previously came to Kaisa\u2019s rescue in 2015 after the developer\u2019s projects were locked up by the Shenzhen government<\/a> as part of a corruption investigation causing Kaisa to default on a $26 million dollar bond.<\/p>\n

That same year, CITIC acquired a 40 percent stake in Chinese developer Advanced Business Park\u2019s Royal Albert Docks regeneration project in east London after that development backed by then-mayor Boris Johnson stalled from lack of customers.<\/p>\n","protected":false},"excerpt":{"rendered":"

China Evergrande\u2019s struggle to pay its debts produced more drama this past week as lenders to the world\u2019s most indebted developer took steps to seize its Hong Kong headquarters.<\/p>\n

The unidentified lenders to Shenzhen-based Evergrande have appointed a receiver to… Read More>><\/a><\/p>\n","protected":false},"author":9671,"featured_media":331226,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[3391],"tags":[8646,6283,5382,5359,3013,694,6684],"ppma_author":[8847],"authors":[{"term_id":8847,"user_id":9671,"is_guest":0,"slug":"christopher-caillavet","display_name":"Christopher Caillavet","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/500c291c35a85a2ad5827cf7c6d198e1?s=96&d=mm&r=g","user_url":"","last_name":"Caillavet","first_name":"Christopher","description":""}],"_links":{"self":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts\/331224"}],"collection":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/users\/9671"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/comments?post=331224"}],"version-history":[{"count":0,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts\/331224\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/media\/331226"}],"wp:attachment":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/media?parent=331224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/categories?post=331224"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/tags?post=331224"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/ppma_author?post=331224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}