Heavily indebted property developer owes $28 M for land sale in China

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Heavily indebted property developer owes $28 M for land sale in China

BEIJING Reuters - Heavily indebted property developer China Evergrande Group said it owes the equivalent of $28 million for land in the eastern city of Changchun, which was bought in June by municipal authorities.

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 Chinese capital cities.

It failed to pay nearly $150m in coupons on three bonds due on Monday, after missing two other bond payments in September.

The local developer pays 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, the Changchun Natural Resources and Planning Bureau said in a statement to Reuters when asked to confirm the sale.

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

It still owes about 180 million USD in US currency, figures show.

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

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

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