After its shocking debt default in December 2021, Evergrande Real Estate Group is facing a possible takeover. One of the Chinese developer’s lenders just took over the firm’s Hong Kong headquarters.
As people familiar with the story told Financial Times, the still unidentified lender informed Evergrande that it had appointed a receiver to take charge of the US$1.2 billion property. Security personnel were also installed by the lender over the 26-storey China Evergrande Centre where the headquarters is located.
The people also said that the lender tasked the receiver from restructuring firm Alvarez & Marsal to force a sale on the headquarters–a property that Evergrande failed to sell twice in the hopes to liquidate the asset to repay creditors.
The headquarters is also pledged in a loan taken by Evergrande from a consortium of lenders led by China Citic Bank International.
The struggling real estate developer has the trading of its shares suspended since March awaiting “inside information statements.” It hasn’t informed the market yet that a receiver has been appointed for its Hong Kong headquarters.
Information for this briefing was found via Financial Times. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.