China Evergrande Group said on Monday its unit has entered into a deal to sell a piece of commercial land in Shenzhen for 7.54 billion yuan ($1.05 billion), as the embattled property developer looks to shave off its massive debt.
Evergrande, which has about $300 billion in liabilities, has been at the centre of a deepening property debt crisis in China that has seen multiple developers defaulting on their offshore debt obligations over the past year, prompting many to consider debt restructuring.
The company said it will sell the land to Shenzhen Anhe No. 1 Property Development, a unit of Shenzhen Anju Construction Investment and Operation. Real-estate firm China Vanke holds a 20 per cent stake in Shenzhen Anju.
Evergrande expects a loss of about 163 million yuan from the disposal of the 10,376.82 square meter landholding located in Shenzhen.
The company said the proceeds from the sale will be used to repay relevant debts in respect of the land, while adding the land did not generate any rental income in 2020 and 2021.
($1 = 7.2095 Chinese yuan renminbi)