China Evergrande will sell its Crystal City Project for RMB 3.66bn ($575.45mn), as its liquidity crunch dampens the progress of its projects, according to an HKEX filing. The developer plans to offload the state-owned construction land-use rights and ownership right to the buildings of its Crystal City Project located in Hangzhou. The project was under construction. Transaction proceeds will be used to repay construction fees of RMB 920.7mn ($144.7 mn) for projects in Hangzhou, including the Crystal City Project. It also expects a gain of about RMB 216mn ( $33.97mn). Separately, Evergrande provided an update on the investigation into its property services unit where lenders claimed over RMB 13.4bn ($2.2bn) of its deposits. Preliminary investigation showed that the pledges and enforcement took place in 2021.
Some bondholders of a Sunac China’s unit’s RMB 4bn ($630mn) bond puttable on April 1, have countered the real estate developer’s payment-extension offer. They are demanding that at least 80% of the amount due should be remitted then, as per Bloomberg. “The remaining principal would then be due June 10” according to the document sent by the bondholders to the trustee. As per the note’s prospectus, the trustee can call an investor meeting if owners of at least 10% of the bond’s outstanding principal demand one. Last week the unit proposed a two year extension to fulfill repayment obligations from the exercised put options.
