Evergrande suffers setback as debt-stricken developer fails to sell its US$1.7 billion Hong Kong office tower to Yuexiu Property

State-backed Yuexiu Property dropped its offer to buy Evergrande’s 26-storey office tower in Wan Chai over concerns about the embattled home builder’s hefty debts, Reuters reported

The decision to pull out came after the central bank criticised Evergrande for ‘poor management’ at a media briefing on Friday in Beijing

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The home builder had been seeking to sell the China Evergrande Centre in Wan Chai that serves as its headquarters in Hong Kong for US$2 billion. Photo: Edmond So

Published: 7:45pm, 15 Oct 2021Updated: 12:48pm, 16 Oct 2021

China Evergrande has failed to sell its single largest asset to state-backed Yuexiu Property, Reuters reported, a huge blow to the debt-stricken developer’s frantic efforts to raise the funds it needs to survive.

Guangzhou government-backed Yuexiu Property dropped a proposed US$1.7 billion offer to buy Evergrande’s 26-storey office tower in Wan Chai. Reuters cited two sources saying Yuexiu’s board had opposed the move over worries that Evergrande’s unresolved indebtedness would create potential complications in completing the transaction smoothly.

Evergrande and Yuexiu did not respond to inquiries from the Post.

The embattled home builder had been seeking to sell the China Evergrande Centre in Wan Chai that serves as its headquarters in Hong Kong to mainland peer Yuexiu Property for US$2 billion, Bloomberg and other mainland media reported in August. Evergrande paid US$1.61 billion for the building six years ago.

The deal was expected to be completed by the end of September, sources close to the matter had previously told the Post.