The Chinese Communist Party (CCP) has appropriated a large area of undeveloped land from the debt-laden developer China Evergrande Group without giving compensation.
Due to debt-related issues, many land plots owned by Evergrande could not be developed and became idle. As a result, the number of parcels is also increasing.
According to incomplete statistics from the CaiLian news outlet, since September 2021, more than 1,980 acres (12,000 mu) of land have been retrieved by the CCP without recompense.
The retrieved plots are in Anqing, Zhengzhou, Jiaozuo, Haikou, Chengdu, Qingdao, Taiyuan, Cangzhou, and other cities.
The CaiLian news outlet reported that Evergrande’s recovered plots are mainly cultural tourism and industrial land, accounting for more than 80%, with an area of about 1,634 acres (9,919 mu).
However, some cultural tourism projects also include residential land.
In the latest development, the Jiangxia District authority in Wuhan City, Hubei Province, issued a special announcement on November 16, saying it retrieved the land-use rights of 11 land parcels owned by Evergrande.
Evergrande still needed to develop these land parcels. However, the group planned to use the lands, involving an area of about 381 acres, for the Evergrande Science and Technology Tourism City project.
The Evergrande Science and Technology Tourism City project, was originally the Wuhan Baden City project, which was obtained by Evergrande from Jiakai City in 2017 at a listing price of $800,000.
In October 2021, “Haikou New World Beautiful Sand,” another cultural tourism project of Evergrande, was also retrieved by the Haikou municipal government without compensation. A total of 8 plots covering an area of about 544 acres were taken back by CCP authorities.
Among the cultural tourism plots, the CCP reclaimed is the Evergrande Health Valley project in Jiaozuo, Henan Province. Part of the project has been idle for more than two years, and an area of about 198 acres was reclaimed.
In addition to tourism and resort project land, 14 parcels of industrial land belonging to Evergrande Automobile and its affiliates in Zhengzhou were also appropriated. Evergrande acquired these plots, with an area of about 512 acres, in 2019.
Some of the reclaimed land plots have re-entered the bidding and auction market.
According to Evergrande’s 2021 interim report, as of the middle of last year, it had 778 land reserve projects distributed in 233 cities in China, with a total planned construction area of about 53 acres.
In addition to being retrieved, many assets under Evergrande were disposed of through other means.
For example, many of Evergrande’s assets in Hong Kong were taken over directly by creditors, some projects were auctioned off after being taken over, and some were sold.