Debt-laden developer giant China Evergrande Group was forced to give back undeveloped land to Wuhan city, Hubei Province.
In a special announcement on November 16, the Jiangxia District government in Wuhan said that it retrieved the land-use rights of the land parcels at the Evergrande Science and Technology Tourism City project.
Wuhan Baden City Investment Co. Ltd., a unit of China Evergrande, formerly held the land.
The filing from Jiangxia District’s Planning and Natural Resources Bureau revealed that the municipal district had taken back 11 land parcels from Evergrande.
The parcels include nine residential sites, two commercial pieces, and one for mixed development.
According to Reuters, the total area of the parcels was 134,500 hectares (332 acres).
The district made no payment for seizing the land from Evergrande.
In China, land-use rights are equal to ownership because the government ultimately holds the land.
China Evergrande Group is struggling to deal with its debt mountain. The group is engulfed by $300 billion in total liabilities.
After defaulting on its dollar debt at the end of 2021, Evergrande has seen many of its assets seized by creditors in both mainland China and Hong Kong.
In September, Evergrande’s local headquarters in Hong Kong was taken over by China Citic Bank Corp.
In August, Evergrande said it would return the land use rights of Guangzhou Evergrande Football Stadium to the Guangzhou city government in return for a refund of 5.52 billion yuan to repay debts.