Evergrande to sell project in eastern China for 1.35b yuan

EMBATTLED property developer China Evergrande Group is selling the City Light Plaza project in the country's eastern marine hub of Ningbo for 1.35 billion yuan (S$275.1 million) to shore up its finances.

Saddled with more than $300 billion in liabilities, Evergrande has been struggling to repay suppliers, creditors and complete projects. State-owned enterprises have stepped in to help with the debt restructuring process and taken over some of its assets to quell market concerns about a disorderly collapse.

The sale announced on Thursday (May 26) will transfer the project, currently under construction, to Zhejiang Zhejian Real Estate Group and Zhejiang Construction Engineering Group.

Evergrande will receive proceeds of 294 million yuan, some of which will be used to settle certain unpaid construction fees for the project. The rest of the proceeds will be used for its general working capital.

The sale is expected to post a gain of about 175 million yuan, Evergrande said in a filing. REUTERS