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Evergrande crisis: delivery of homes continues to decline, vendors receive property in lieu of overdue payments
- China Evergrande said it handed over 57,462 homes across 184 projects in the mainland since July, but deliveries fell sharply last month
- Two suppliers, owed millions in payment, received flats from the developer instead of cash
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Embattled China Evergrande Group is putting on a brave face even as it teeters on the brink of collapse, saying it has been steadily delivering homes and repaying suppliers as required by the central government.
The Chinese developer, saddled with 1.97 trillion yuan (US$308.5 billion) of liabilities, said on its official WeChat account on Wednesday that it had handed over 57,462 homes since July across 184 projects, from Harbin in northern Heilongjiang province to Urumqi in the northwest autonomous region of Xinjiang.
However, the number of homes delivered each month has been declining sharply. It handed over 7,568 to buyers in October, one third the volume in July when its liquidity crisis started to escalate.
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“Assuring the delivery of homes is the number one priority of Evergrande,” the Shenzhen-based company said on its social media account. “Everyone in the company, led by chairman Hui Ka-yan, has made a pledge … that we deliver quality projects at full stretch and by any means possible.”
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The Evergrande theme park left derelict in China’s Jiangsu province
The Evergrande theme park left derelict in China’s Jiangsu province
Evergrande’s crisis has had the market on edge for the last few months because of its massive debt. Hui, in the last interim report released in August, admitted that billions of yuan worth of repayments to its suppliers were overdue and that building work at some of its housing projects had been suspended as a result.
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The lack of liquidity has meant that the company has had to repay its suppliers in kind.
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