Debt-ridden real estate developer China Evergrande sells land for $1bn

Real estate giant China Evergrande has sold land formerly intended for its headquarters in Shenzhen’s southern technology hub for $1 billion, according to a white paper, as it struggles to survive.

The real estate giant was involved in restructuring talks after amassing $300 billion in debt following Beijing’s crackdown on over-indebtedness and rampant speculation in the real estate sector.

The 10,377 square meters (111,700 sq ft) land in Nanshan District was sold to Shenzhen Anhe No. 1 A 7.5 billion yuan real estate development company, according to land transaction reports released on Saturday by the city’s Public Resource Exchange Center.

Evergrande has been trying to get rid of assets in recent months and its financial position has deteriorated significantly since last year.

His troubles are emblematic of the crisis engulfing China’s huge real estate sector, with smaller companies also defaulting on loans and others scrambling to raise cash after Beijing imposed wide-ranging lending restrictions in 2020.

Major developers, including Evergrande, were unable to complete projects, prompting a mortgage boycott and protests from homebuyers.

China’s banking regulator earlier this month unveiled massive measures to support the real estate sector, including lending support to distressed developers to ensure projects are completed and handed over to homeowners.