China Evergrande owes $ 28 million for Changchun land, city government says

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BEIJING: Heavily indebted real estate developer China Evergrande Group owes the equivalent of US $ 28 million for land in northeast Changchun city, which it bought in June, city officials 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, in a series of sales coordinated by 22 of the largest cities in China.

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

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He failed to pay nearly $ 150 million in coupons on three bonds due Monday, after missing two more bond payments in September.

The local developer has made a deposit of 120.3 million yuan, but has not yet completed the next round of payment equal to 50% of the transaction price, said the Changchun Bureau of Natural Resources and Planning. in a statement to Reuters when asked to confirm the sale.

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

He still owes about 180 million yuan ($ 28 million), according to Reuters calculations.

Changchun Jitao Real Estate has been asked to make the 50% payment in full, the office said in a statement dated Oct. 11.

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

The land, measuring 116,519 m² (28.8 acres), is the only land Evergrande has purchased this year in auctions conducted by 22 cities, including Beijing and Shanghai, according to a Reuters analysis of public notices.

(1 USD = 6.4364 yuan Chinese renminbi)

(Reporting by Ryan Woo; editing by Jason Neely)

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