What’s new: Debt-ridden developer China Evergrande Group transferred its stakes in several property projects to partners as part of its debt relief efforts.
An Evergrande unit in Kunming, Yunan province, transferred its entire stake in a residential and commercial complex project in the city Jan. 13 to Minmetals International Trust Co. Ltd. at a valuation of 50 million yuan ($7.87 million), public records showed. A similar stake transfer was filed Jan. 12 between an Evergrande unit in Foshan, Guangdong province, and Minmetals Trust.
“The stake transfers were not asset sales but using the stake transfer to repay debts to previous partners,” an Evergrande employee said. The deals didn’t bring any revenue to the company.
The transfers also aim to ensure the delivery of the projects as Minmetals Trust will continue their development, the person said.
The background: Evergrande is struggling with more than $300 billion in liabilities as of mid-2021. It was labeled a defaulter last month after missing dollar-bond payments.
Regulators have urged the developer to prioritize making payments to migrant workers and suppliers as well as finishing the more than 1 million residences that buyers put deposits on.
In a January statement, the company said construction resumed on nearly 92% of its projects.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bobsimison@caixin.com)
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