China Evergrande switches headquarters building in cost-saving move as financial pressures mount
- Evergrande says to ‘save costs’ its has moved its headquarters building
- Analysts say headquarters move not only saves costs, but may help Guangdong government solve Evergrande problem
The company’s logo on the building where it was previously housed was seen being taken down on Monday.
“To save costs, [Evergrande] went through lease cancellation procedures at the Excellence Houhai Finance Center in December 2021 and [we have] moved to our own property … The company’s registered place has not changed and is still in Shenzhen,” the developer said in a statement on its website on Monday.
The 43-storey building in the prime Nanshan district of Shenzhen, which Evergrande has vacated, has rents starting from around 280 yuan (US$43.92) per square metre per month currently, according to DiChanDaDang, an online service portal by JLL that is dedicated to commercial real estate.
Evergrande was founded in the southern Chinese city of Guangzhou, after which it moved its headquarters to the tech hub of Shenzhen in 2017. Both cities are located within Guangdong province. It was reported by local media outlet The Paper that while the current headquarters move is within Shenzhen, many staff have been moved to Guangzhou.