Evergrande surrenders 11 plots of land to Wuhan with zero refund, after letting them sit idle since 2017
- The land parcels, measuring a combined 1.5 million square metres, were surrendered to authorities in the Hubei provincial capital without compensation
- The land, originally named the Badeng New City, was bought for 5.6 billion yuan in August 2017 and renamed Evergrande Technology Tourism City
The land parcels, measuring a combined 1.5 million square metres (16.14 million square feet), were surrendered to the authorities in the Hubei provincial capital of Wuhan without compensation, according to an announcement last Friday by the local Planning and Natural Resources Bureau.
The land, zoned for leisure and tourism and originally named the Badeng New City, was bought for 5.6 billion yuan (US$786.4 million) in August 2017 from China Calxon Group, and renamed Evergrande Technology Tourism City, according to a filing by Calxon.
“The government of Jiangxia district made the decision to retrieve the land-use right of the 11 undeveloped parcels at the Evergrande Technology Tourism City on November 16, with no refund,” said the Wuhan government’s filing.
Evergrande Technology Tourism City is one among dozens of property projects strewn across China that the Guangzhou-based developer – with more than US$300 billion of liabilities – is struggling to complete and deliver to buyers.