Evergrande restarts 668 housing projects, with contracted home sales hitting 18.2 billion yuan in 8 months
Published: Sep 22, 2022 03:32 PM
Evergrande Group Photo: CFP

Evergrande Group Photo: CFP

A total number of 668 stalled housing projects belonging to China Evergrande Group have resumed construction now, in contrast to 38 projects which remain dormant, the developer said. 

As many as 606 projects have reached the normal construction level, the debt-ridden real estate company announced in a report to the Hong Kong Stock Exchange on Wednesday.

The report said that from January to August, contracted sales completed by the property developer reached 18.2 billion yuan ($2.56 billion), with the gross contracted sales area reaching 1.94 million square meters.

In addition, the developer is discussing with Evergrande Property Services repayment of a pledged amount reaching 13.4 billion yuan, which will be mainly offset through the transfer of assets from the parent company to Evergrande Property Services.

Evergrande said that the company's 2021 audit and review of the 2022 interim results are still in progress and the company will release the results as soon as possible.

At the same time, the company is actively pursuing offshore debt restructuring with its financial and legal advisors, and will announce a concrete solution plan that respects the rights of all stakeholders.

The enterprise noted that trading of its shares will remain suspended at the Hong Kong bourse, and the shareholders and investors will be informed of any material developments.

Recently, a number of local governments in China have ramped up efforts to ensure the delivery of buildings to home-buyers in an attempt to rejuvenate the slumped real restate sector.

On September 9, Bureau of Planning and Natural Resources of Taiyuan, North China's Shanxi Province issued a notice to 41 companies including Evergrande and OCT Group, urging them to start housing construction in 56 property projects as soon as possible.

At the end of July, Evergrande claimed that as many as 96 percent of the stalled housing projects had resumed construction. As for the restructuring of overseas debts, it hoped that a concrete restructuring plan will be announced at the end of 2022.

Global Times