Home News Creditor Oaktree sells Evergrande’s ‘Versailles mansion’ plot in Hong Kong

Creditor Oaktree sells Evergrande’s ‘Versailles mansion’ plot in Hong Kong

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Oaktree Capital sells a large swath of land foreclosed from Hong Kong’s Evergrande to build a Versailles-style mansion, giving a heavily indebted Chinese property developer one of its most important assets. caused a loss of $770 million.

Evergrande The recipient of the lot, codenamed ‘Project Castle’, was allowed to join the project because the developer’s chairman intended to build his own mansion on the site, according to Sunday’s filing with the Hong Kong Stock Exchange. Sold for approximately $637 million to pay off related debt. The land he took over to Oaktree in January.

Defaulting investors appointed a trustee to seize control of the 2.2 million-square-foot lot after Evergrande defaulted on a secured loan. A person familiar with the matter said Oaktree has recovered its investment and interest.

The seizure by Oaktree, which also controlled a plot of Evergrande near Shanghai dubbed “Project Venice,” was one of the most high-profile actions by offshore creditors to claim developer assets.

Oaktree declined to comment. Evergrande did not immediately respond to a request for comment.

China’s property sector has suffered a liquidity crisis over the past year, with a spate of defaulting property companies.

The sale of Evergrande is one of the first signs of losses facing Chinese property developers as they rush to sell assets to pay off huge debts.

Real estate firms often struggle to sell assets, prolonging the crisis that began after many real estate firms ran out of cash, including: Government tightening regulation on leverage 2021 years.

Evergrande has about $300 billion in debt, of which about $20 billion is held by offshore bondholders.The developer did not provide a subsequent restructuring plan missed the July deadline One this year. Creditors have seized Evergrande’s assets and are demanding repayment.

Last week, Evergrande chairman Hui Ka Yan Lost an upmarket neighborhood in the Peak District in Hong Kong after being acquired by the state-owned China Construction Bank (Asia).

Evergrande’s Hong Kong headquarters in Wan Chai was seized in September by lenders led by China CITIC Bank International, the Hong Kong subsidiary of the state-owned bank. It was pledged in exchange for a loan of HK$100 million (US$968 million).

A source close to the sale told the Financial Times that the building has attracted interest from more than 30 prospective buyers, including Chinese state-owned enterprises, and is worth around HK$8 billion to HK$9 billion.

Additional reporting by Cheng Leng from Hong Kong

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