Beijing News (Reporter Kodna) December 14, China Evergrande Group (referred to as "China Evergrande") announced the sale of the interests of the project company. The announcement shows that China Evergrande’s subsidiary Hengda Real Estate Group Co., Ltd. (referred to as "Hengda Real Estate") will transfer its 30% equity and project operating interests in the project company to Guangda Xinglong Trust Co., Ltd. (referred to as "Guangda Xinglong Trust") or designated by Guangda Xinglong Trust, the total consideration is about 663 million yuan.
According to the information, the above-mentioned project company was established on September 30, 2020. It is an enterprise engaged in real estate development and is responsible for the development of the North Bund project in Shanghai. The project plot area is about 12,600 square meters, and it is planned to be a commercial and residential office. The total planned area is 45,000 square meters, of which the residential construction area is 20,000 square meters and the commercial construction area is 25,000 square meters. The project company is held by Evergrande Real Estate and the joint venture party is 30% and 70% respectively. The joint venture party is an affiliated party of Guangda Xinglong Trust. The project has been suspended.
The announcement disclosed that the consideration for the sale of the interests of the project company is about 663 million yuan, which is determined by Hengda Real Estate and Guangda Xinglong Trust after fair negotiation with reference to the group’s assessment of the value of the adjacent land plots of the project and the overall situation of the current property market. In addition, 20 million yuan in the consideration will be paid in cash, and the remaining 643 million yuan in cash will be used to settle the current claims of Hengda Real Estate and its related party project company and joint venture party.
Editor, Wu Xin
Proofreading, Zhao Lin
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