Struggling property giant China Evergrande Group (恆大集團) has had a lucrative building plot in suburban Hong Kong sold off by its US receiver to cover a portion of the company’s massive debts, according to the company’s filings.
The undeveloped plot in the border district of Yuen Long was sold for nearly US$637 million, with Evergrande saying it expected to record a loss of approximately US$770 million on the land, according to a statement filed on the Hong Kong stock exchange on Sunday.
“The proceeds from such sale will be used to repay the company’s financial obligations in relation to the project,” Evergrande said.
Photo: Reuters
The Yuen Long land was first seized as security by the Los Angeles-based asset management fund Oaktree Capital Management LLC in January last year when Evergrande defaulted on US$600 million it had borrowed.
Evergrande spent more than US$1.13 billion to obtain the vast plot next to Hong Kong’s Mai Po Nature Reserve, an internationally significant wetland known as a “paradise for birds.”
The group originally proposed to develop 268 villas on the land, with a huge palace-like mansion at the center that it hoped to sell for US$510 million.
Hong Kong media last week reported that three mansions in the city’s prestigious Peak district owned by Evergrande founder Hui Ka Yan (許家印) had been seized by the China Construction Bank (中國建設銀行) and Japanese financier Orix Corp as repayment for loans.
The total market value of the three mansions was estimated to be US$318 million, according to online news outlet HK01.
The company is also looking to sell its headquarters in Hong Kong which occupies a highly sought-after patch of land on the harbor front.
Evergrande was due to unveil a restructuring plan in July, but the announcement was postponed to an unspecified date. Trading of Evergrande shares listed in Hong Kong has been suspended since late March.
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
After several years flying high as Asia’s best Nvidia Corp proxy, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is increasingly vying with other artificial intelligence (AI) stocks for investor attention. Stock traders are chasing a wider array of beneficiaries as mainstream usage of AI creates demand for hardware beyond the most-advanced chips TSMC makes for Nvidia. Subthemes from the deepening memory crunch to advances in robotics are also luring bids. At the same time, investment caps on single stocks are pushing funds to diversify, while retail investors long familiar with TSMC through its US depositary receipts are being offered a broader set of
TECH RELIANCE: Growth is increasingly reflecting an unequal K-shaped distribution, where technology sectors outperform and other industries struggle, an expert said Standard Chartered Bank has significantly raised its forecast for Taiwan’s economic growth to 9.5 percent this year, up from 7.6 percent previously, citing surging artificial intelligence (AI) demand driving exports, semiconductor production and investment. The upgrade reflects a sustained AI supercycle that continues to fuel demand for advanced chips and technology infrastructure, which form the backbone of Taiwan’s exports, the bank said in a report this week. “We raise our 2026 growth forecast to reflect a much stronger-than-expected first-quarter GDP figure,” Standard Chartered senior economist for greater China and Asia Tommy Wu (胡東安) said in the report. Driven largely by a 35.3 percent
Two of Taiwan’s international carriers, Starlux Airlines Co (星宇航空) and EVA Airways Corp (長榮航空), have retained the five-star airline rating awarded by international airline review organization Skytrax. Starlux was awarded the distinction for a second consecutive year, while EVA Air received it for the 11th straight year, Skytrax said in statements released yesterday and on Thursday last week, respectively. The five-star rating is considered one of the airline industry's highest honors and is awarded following professional audits of airline product and frontline service standards, Skytrax said. The ratings are based on in-depth assessments using unified global quality standards rather than customer review scores
RSS