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China Evergrande to sell stake in Crystal City Project for $575 million -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – The China Evergrande Centre sign can be seen in Hong Kong on December 7, 2021. REUTERS/Tyrone Siu

(Reuters) –China Evergrande is selling its Crystal City Project interest for 3.66 billion yuan ($575.45m), as liquidity problems slow down the group’s projects.

According to the filing, the embattled developer will dispose of the rights to use the state’s construction land for Crystal City Project in Hangzhou and also the ownership rights to the buildings.

Evergrande stated in the filing it will use the proceeds for repayment of construction fees of 920.7million yuan to Hangzhou projects, including Crystal City Project. It expects that the stake sale will result in a gain in excess of 216 million Yuan.

After concerns over its financial health and delayed publication of its annual results, the most indebted property developer in the world had announced last week that it would present a restructuring plan to its creditors by July 31st.

($1 = 6.3602 )

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