Seizure Of Evergrande’s Hong Kong HQ Confirmed

HONG KONG – A document from the city’s Companies Registry shows that China Evergrande’s Hong Kong headquarters has been seized by a receiver, corroborating previous reports that the indebted property developer had lost control over the office tower valued at over US$1 billion, reported Bloomberg on Tuesday (13 September, SGT).

Records from Hong Kong’s Companies Registry showed that Alvarez & Marsal Asia has become the receiver that has taken control of the China Evergrande Centre.

While it’s unclear from the document which company appointed the receiver, it was reported last week that a lender had seized the office building. The report added that the indebted Chinese developer had used the commercial property as collateral for loans granted by a consortium of lenders led by China Citic Bank International.

Separate documents from the Companies Registry website revealed that the office tower was used as collateral for HK$7.6 billion (US$968 million) in loans granted by parties including Citic Bank International in 2020.

China Evergrande is facing a credit crisis that has impacted the overall Chinese property industry and affected the economic growth of the 2nd biggest economy in the world. Notably, the company failed to implement a preliminary restructuring plan for its offshore debt that it had promised to do by end-July. The developer has since stated that it would try to announce a specific debt restructuring proposal before the end of 2022.

The China Evergrande Centre is a 26-storey office tower in Wan Chai near Hong Kong’s Central. It is among the real estate developer’s most expensive assets in the city, and the company had failed to dispose the office tower twice.