China Evergrande will sell its interest in Crystal City Project for 3.66 billion yuan ($575.45 million), according to a Hong Kong Stock Exchange filing on Wednesday, as the group's liquidity issues dampen the progress of its projects.
The embattled developer plans to dispose of the state-owned construction land-use right for its under-construction Crystal City Project in the Hangzhou area, and the ownership right to the buildings, according to the filing. Evergrande said in the filing that it would use the proceeds to repay construction fees of 920.7 million yuan for projects in Hangzhou, including the Crystal City Project, and expects a gain of about 216 million yuan through the stake disposal.
Last week, the world's most indebted property developer had said it will unveil a debt restructuring proposal for its creditors by the end of July after concerns about its financial health were renewed by a delay in publishing its annual results. ($1 = 6.3602 Chinese yuan)
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