A tender for the sale of the embattled China Evergrande Group's Hong Kong headquarters has lapsed again, according to two sources with knowledge of the matter on Tuesday, because the offer prices and terms fell short of the requirements.
China Evergrande Centre's lenders appointed a receiver in September to seize the asset and tender it for sale with a bid deadline of October 31.
Evergrande, which is saddled with more than $300 billion in liabilities, is at the heart of China's unprecedented property sector crisis, and had been attempting to sell the 27-story tower to raise cash before it was seized.
The tower was pledged as collateral for a HK$7.6 billion loan from lenders led by China Citic Bank Corp Ltd's Hong Kong subsidiary.
According to a source close to Citic, the lenders may relist the asset when market conditions improve from the second half of last year.
The sources requested anonymity because the sale negotiations were private.
Citic did not respond immediately to a request for comment. Evergrande and Savills, the tender sale's agent, declined to comment.
According to Reuters, Evergrande was looking to sell the tower, which is located in the busy commercial district of Wan Chai, by tender, but only received a couple of bids, with offers below HK$10 billion and its 2015 purchase price of HK$12.5 billion.
The collapse of a potential $1.7 billion deal to sell the building to Chinese state-owned Yuexiu Property in 2021 was a setback for Evergrande's efforts to divest assets in order to repay creditors after missing interest payments on offshore bonds.
(Source:www.business-standard.com)
China Evergrande Centre's lenders appointed a receiver in September to seize the asset and tender it for sale with a bid deadline of October 31.
Evergrande, which is saddled with more than $300 billion in liabilities, is at the heart of China's unprecedented property sector crisis, and had been attempting to sell the 27-story tower to raise cash before it was seized.
The tower was pledged as collateral for a HK$7.6 billion loan from lenders led by China Citic Bank Corp Ltd's Hong Kong subsidiary.
According to a source close to Citic, the lenders may relist the asset when market conditions improve from the second half of last year.
The sources requested anonymity because the sale negotiations were private.
Citic did not respond immediately to a request for comment. Evergrande and Savills, the tender sale's agent, declined to comment.
According to Reuters, Evergrande was looking to sell the tower, which is located in the busy commercial district of Wan Chai, by tender, but only received a couple of bids, with offers below HK$10 billion and its 2015 purchase price of HK$12.5 billion.
The collapse of a potential $1.7 billion deal to sell the building to Chinese state-owned Yuexiu Property in 2021 was a setback for Evergrande's efforts to divest assets in order to repay creditors after missing interest payments on offshore bonds.
(Source:www.business-standard.com)
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