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CK Asset Makes Bid For Evergrande’s Hong Kong Headquarters
The China Evergrande Center in Hong Kong.Photographer: Chan Long Hei | Bloomberg
July 28th, 2022 | 14:57 PM | 303 views
CHINA
Billionaire Li Ka-shing’s real estate unit put in a bid for China Evergrande Group’s Hong Kong headquarters as the embattled Chinese developer looks to raise much-needed cash ahead of a planned debt restructuring.
CK Asset Holdings Ltd. submitted a tender offer for the Wan Chai building, according to a statement Thursday. The building is being valued at about HK$9 billion ($1.15 billion), the Hong Kong Economic Times reported, citing market estimates.
The defaulted developer is looking to boost cash ahead of a restructuring that could be announced as soon as the end of this month. Saddled with about $300 billion in liabilities, Evergrande joins a clutch of developers that stumbled after China clamped down on borrowing by over-leveraged property firms.
Yuexiu Property Co. dropped a planned purchase of the headquarters last year, in a deal that was valued at about HK$10 billion, according to the Economic Times report.
Evergrande’s restructuring proposal may shed light on the government’s treatment of offshore bondholders, along with the company’s asset disposal plans and potential debt haircuts or maturity extensions.
Source:
courtesy of BLOOMBERG
by David Scanlan
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