The Chinese Evergrande Group said on Monday it has entered into a deal to sell a piece of commercial land in Shenzhen for 7.54 billion yuan $1.05 billion, as the embattled property developer looks to shave off its massive debt.
Evergrande, which has about $300 billion in liabilities, has been at the centre of a deepening property debt crisis in China, which has seen several developers defaulting on their offshore debt obligations over the past year, prompting many to consider debt restructuring.
The company said it will sell the land to Shenzhen Anhe No. 1 Property Development is a unit of Shenzhen Anju Construction Investment and Operation. In Shenzhen Anju, real-estate firm China Vanke holds a 20 per cent stake.
Evergrande expects to lose about 163 million yuan from the disposal of 10,376. There is an 82 square meter landholding in Shenzhen.
The land did not generate any rental income in 2020 and 2021, and the proceeds will be used to repay debts in respect of the land, according to the company.