Heavily indebted property developer buys 2 million acres of land in China

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Heavily indebted property developer buys 2 million acres of land in China

Beijing Reuters : Heavily indebted property developer China Evergrande Group bought two million acres of land in the new city of Changchun, which was also owed in June, municipal authorities said.

Evergrande bought the land through local developer Changchun Jitao Real Estate Development Co for 601 million yuan $93 million in an auction on June 17, part of a series of coordinated sales by 22 of China's biggest cities.

It failed to pay $150 million worth of Coupons on three bonds due on Monday, after missing two other bond payments in September.

The local developer paid a deposit of 120.3 million yuan but has yet to fully make the next round of payment equal to 50% of the transaction price, said the Changchun Natural Resources and Planning Bureau in a statement to Reuters when asked to confirm the sale.

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

I still pays about 180 million yuan 28 million, Reuters calculations show.

Changchun Jitao Real Estate has been urged to make the full payment to 50% in Oct. 11, the bureau said in a statement of Oct 11.

Payment for the rest of the deal is not yet due, it said.

The plot of land measuring 116,519 sq m 28.8 acres is the only piece of land Evergrande bought in auctions conducted by 22 cities, which include Beijing and Shanghai, according to a Reuters analysis of public notices.