China Evergrande owes $28 mln for Changchun land, city govt says

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BEIJING, Oct 14 (Businesshala) – Heavy debt property developer China Evergrande Group (3333.HK) owes the equivalent of $28 million for land it bought in June in the northeastern city of Changchun, municipal officials said.

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Evergrande bought the land through local developer Changchun Jeeto Real Estate Development Company for 601 million yuan ($93 million) at an auction on June 17, part of a series of sales coordinated by China’s 22 largest cities.

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Evergrande, which did not respond to a Businesshala request for comment, is tied up for cash with more than $300 billion in liabilities.

After missing two other bond payments in September, it failed to pay nearly $150 million worth of coupons on three bonds due Monday.

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Changchun Natural Resources and Planning Bureau said in a statement to Businesshala that the local developer has paid a deposit of 120.3 million yuan, but the next round of payment, equivalent to 50% of the transaction price, is yet to be fully completed.

Changchun Jeeto Real Estate was to pay 50% within 30 days of the sale, but has paid only 20%, the bureau said in a faxed statement.

It still owes about 180 million yuan ($28 million), a Businesshala calculation showed.

Changchun Jeeto Real Estate has been urged to complete 50% payment, the bureau said in a statement on October 11.

The payment for the rest of the transaction is yet to be outstanding, it said.

According to a Businesshala analysis of public notices, the plot of land, which measures 116,519 square meters (28.8 acres), is the only piece of land Evergrande has bought at auctions organized by 22 cities, including Beijing and Shanghai.

($1 = 6.4364 Chinese Yuan Renminbi)

Reporting by Ryan Woo; Editing by Jason Neely

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