Fighting for survival, the debt-stricken developer giant, China Evergrande Group, had to sell a large parcel of land on which it originally planned to build a high-rise building in Shenzhen.
Bloomberg reported that Evergrande sold the land plot with an area of 111,700 sq ft (10,377 sq m) for $1.05 billion (7.54 billion yuan) on Saturday, November 26.
The commercial land, located in the Nanshan district of the southern tech hub Shenzhen, had been up for sale since mid-November.
According to the South China Morning Post, the buyer is the city authority-backed Shenzhen Anju Jianye Investment Operation.
Evergrande bought the property for $770,000 million in 2017. It planned to build a 71-story tower in 2024 to house its headquarters in Shenzhen.
However, due to the group’s cash crunch, construction on the over 1,290 ft high project stalled in September 2021.
Since then, the property has been idle as the embattled developer is selling assets to whittle down its debt.
In a filing sent to the Hong Kong stock exchange late on Monday, November 28, Evergrande said that it would take a $22.7 million loss in the disposal of the land because the price came in below the asset’s book value.
Evergrande, China’s one-time largest property company, is now the most indebted developer in the country with $300 billion in liabilities.
The property behemoth defaulted on its dollar debt at the end of 2021 after the Chinese Communist Party cracked down on excessive debt and rampant speculation in the real estate sector.
The disposal of the Shenzhen land piece is among a flurry of asset sales by Evergrande.
Earlier in November, the indebted developer also sold a land plot in the Yuen Long district in Hong Kong at a loss of $770 million.
Evergrande has recently surrendered 11 parcels of land with a total area of over 16,000 sq ft to the Wuhan city authority.