Evergrande’s Hong Kong headquarters worth $1 billion taken over by receivership

The China Evergrande Group’s Hong Kong headquarters building has been taken over by receivership, according to a company registry document, confirming previous reports that the developer had lost control of the tower worth over $100,000. a billion dollars.

Alvarez & Marsal Asia Ltd. became the receiver controlling the China Evergrande Center in the Wan Chai area, according to the filing. It is unclear from the document who named Alvarez & Marsal.

The Financial Times reported last week that a lender had foreclosed on the property, adding that the struggling Chinese developer had pledged the building for loans from a consortium of lenders led by China Citic Bank International. The property was used as collateral for HK$7.6 billion ($968 million) in loans made by parties including Citic Bank International in 2020, according to separate documents on the Companies Registry website.

Evergrande is at the center of a credit crunch that has rippled through China’s property sector and dampened growth in the world’s second-largest economy. The developer did not provide a preliminary plan to restructure its offshore debt that it promised in late July, and has since said it will try to announce a specific proposal before the end of the year.

The 26-storey office building near the city center is one of Evergrande’s most valuable assets in Hong Kong. The developer has failed to sell the building at least twice as it rushes to raise funds.

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