E-Paper
Vanke sells headquarters project for $309 million to raise cash
China Vanke Co sold an unfinished property project once designated as its new headquarters to buyers including a major shareholder
(Bloomberg) -- China Vanke Co. sold an unfinished property project once designated as its new headquarters to buyers including a major shareholder, the developer’s latest effort to divest assets and boost liquidity.
Also Read: China’s housing rescue too small to end crisis, analysts say
Vanke sold the commercial real estate project in Shenzhen, which spans an area of almost three soccer fields, for 2.24 billion yuan ($309 million), according to an auction result posted Monday at a government-backed land trading center. That’s less than the 3.1 billion yuan it paid for the plot in 2017.
The joint buyers include state-owned Shenzhen Metro, Vanke’s largest shareholder, according to a company statement sent to Bloomberg. They purchased the plot at the starting price. The deal will help Vanke reduce the use of funds in non-core assets, it added.
Also Read: China unveils 'historic' steps to stabilise crisis-hit real estate sector
State-backed Vanke has become the latest flashpoint in the nation’s property crisis. Still, the company has raised almost $4 billion in bank loans in recent weeks, and government efforts to support the housing market have also improved its prospects.
Also Read: Can Indian real estate market face a crisis like China's Evergrande?
©2024 Bloomberg L.P.
