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China Evergrande owes $28 mln for Changchun land, city govt says

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BEIJING, Oct 14 (Reuters) – Heavily indebted property developer China Evergrande Group (3333.HK)owes the equal of $28 million for land within the northeastern city of Changchun it purchased in June, municipal authorities mentioned.

Evergrande purchased the land by way of native developer Changchun Jitao Real Estate Development Co for 601 million yuan ($93 million) in an public sale on June 17, a part of a sequence of coordinated gross sales by 22 of China’s greatest cities.

Evergrande, which didn’t reply to a Reuters request for remark, has been strapped for money with over $300 billion in liabilities.

It didn’t pay almost $150 million price of coupons on three bonds due on Monday, after lacking two different bond funds in September. learn extra

The native developer paid a deposit of 120.3 million yuan however has but to totally make the subsequent spherical of cost equal to 50% of the transaction worth, the Changchun Natural Resources and Planning Bureau mentioned in a press release to Reuters when requested to substantiate the sale.

Changchun Jitao Real Estate was required to pay the 50% inside 30 days of the sale, however has solely paid 20%, the bureau mentioned in a faxed assertion.

It nonetheless owes about 180 million yuan ($28 million), Reuters calculations present.

Changchun Jitao Real Estate has been urged to make the 50% cost in full, the bureau mentioned in a press release dated Oct. 11.

Payment for the remainder of the deal just isn’t due but, it mentioned.

The plot of land, measuring 116,519 sq m (28.8 acres), is the one piece of land that Evergrande has purchased this yr in auctions performed by 22 cities, which embrace Beijing and Shanghai, in accordance with a Reuters evaluation of public notices. learn extra

($1 = 6.4364 Chinese yuan renminbi)

Reporting by Ryan Woo; enhancing by Jason Neely

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