Evergrande Hong Kong Headquarter Fails Bid For Sale Again

On January 3rd, it was reported that the bid to sell the Hong Kong headquarters building of the CCP-controlled Evergrande Group, which was deeply in debt crisis, failed again because the buyer’s bid was lower than the requirements of the tender. In September 2022, the Evergrande Center in Wan Chai, Hong Kong was taken over by creditors. Prior to this, Evergrande had used the building as a mortgage in exchange for a HK$7.6 billion loan provided by a consortium led by China CITIC Bank. Afterward, Evergrande Group defaulted on the loan and has not repaid it. Evergrande tried twice to sell the building, but no deal was reached. Currently, the building is being sold exclusively by Savills, a real estate service provider appointed by creditors. The current market value of Evergrande Center is approximately HK$8-9 billion. Evergrande Group purchased it for HK$12.5 billion in 2015, setting a very high price record for commercial buildings in Hong Kong at that time. In July 2022, Evergrande Group sought to sell the Evergrande Center, which has not yet been taken over by creditors, through bidding to solve the urgent need for cash. But the tender only attracted bids from two potential buyers, both below HK$10 billion. Immediately after the creditors took over the Evergrande Center in September, the building was sold again through bidding, with the required deadline for bidding at that time being October 31st. But this time the bidding also failed because the buyer’s bid was too low. With the collapse of the CCP’s economy, the debt crisis of corporate giants is getting closer. At present, the life of Evergrande Group, which is carrying $300 billion U.S. dollars in debt, is getting more and more difficult, and the collapse may be in an instant.