Two other Evergrande real estate assets taken over by public companies

The company logo is seen at the headquarters of China Evergrande Group in Shenzhen, Guangdong province, China September 26, 2021. REUTERS/Aly Song

HONG KONG, Feb 25 (Reuters) – At least two other developments from China Evergrande Group (3333.HK) have been taken over by state-owned companies in recent weeks, company records show.

The takeovers came as the developer struggles to complete projects amid the more than $300 billion in liabilities it holds.

On Jan. 26, the world’s most indebted property developer transferred control of a theme park called Evergrande Fairyland in Guangzhou’s Nansha district to Minmetals International Trust Co, records show.

In addition, on February 11, Evergrande withdrew its stake in a residential development in Dongguan, Guangdong province, which is now under the control of the Chinese group Everbright.

The records do not show the monetary amount involved in the transactions.

Local media first reported on the change in control of the assets.

Beijing is encouraging state-owned enterprises and major real estate developers to acquire assets from cash-strapped property companies to ease pressure on liquidity, and has made it easier for them to raise funds for deals.

Last month, Minmetals Trust bought the stake in two Evergrande projects for a total of 80 million yuan ($12.67 million), in a rare case where a trust company took over assets from a developer in trouble. Read more

($1 = 6.3127 Chinese yuan renminbi)

Reporting by Clare Jim; Editing by Christian Schmollinger

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