The company is sitting on a mountain of debt of more than $ 300 billion.
(Photo: Reuters)
Beijing The shaky real estate giant China Evergrande has also owed millions in payments for a land purchase. For a purchase of land in June in the northeastern metropolis of Changchun, the equivalent of $ 28 million would have to be paid, the city authorities said on Thursday.
Evergrande acquired the land through local developer Changchun Jitao Real Estate Development for the equivalent of $ 93 million. The transaction was part of a series of coordinated sales by China’s 22 largest metropolitan areas. At first, Evergrande was unable to obtain a statement on this.
The company is sitting on a mountain of debt of more than $ 300 billion and has already missed several deadlines for due interest payments to its bondholders. Evergrande is thus fueling concerns about a conflagration in the Chinese real estate sector.
Other property developers have also admitted difficulties in refinancing. Recently, the smaller developers Modern Land and Sinic Holdings tried to postpone deadlines for interest payments. Competitor Fantasia Holdings has also already missed a deadline for interest payments.
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The land acquired by Evergrande has an area of approximately 116,519 square meters. According to a Reuters analysis of public statements, it is the only land the group has bought in auctions in the 22 cities this year.
More: The restructuring of China’s real estate market will be a long and painful process