Chinese real estate operator Yuexiu Property changed his mind to buy a headquarters building located in Hong Kong, the Evergrande country’s largest developer, due to rumors about his soon bankruptcy, reports Reuters with reference to two sources. The developer collided with new difficulties against the background of financial problems.
Evergrande Group put up for auction headquarters China Evergrande Center to pay off part of debt on loans, the total amount of which is about 300 billion dollars. This week, the developer missed the third round of interest payments on international bonds.
The transaction was estimated at 1.7 billion dollars. Yuexiu refused to buy a building, fearing that it would not be able to complete the operation due to the debt issues of the seller. Evergrande bought a building in 2015 for a record real estate objects 1.61 billion dollars.
Evergrande problems became known in September 2021, when the company stopped cope with the payment of loans. Following it, other Chinese companies began to collapse. At the end of September, the SINIC developer shares collapsed by 87 percent in anticipation of the Evergrande default. At first, China’s authorities decided not to interfere in the situation with Evergrande, but then called other developers to acquire a part of the company’s assets.