Evergrande to record $60.3m in Shanghai Henggen Real Estate exit

A unit of Evergrande will sell its 30% stake in Shanghai Henggen Real Estate for $727.3m.

Evergrande’s unit, Hengda Real Estate Group, will sell its 30% stake in Shanghai Henggen Real Estate for $727.3m (RMB 663.2m) to China Everbright Xinglong Trust.

Shanghai Henggen Real Estate is responsible for the development of the Shanghai North Bund Project.

In a bourse filing, Evergrande said its unit will pay $22.4m (RMB20m) in cash to  China Everbright Xinglong Trust. 

“The remaining RMB 643,150,000 ($705.3m) of the consideration will be applied to settle the current accounts owed by the vendor and its affiliates to the Project Company and the JV Partner,” Evergrande stated.

Evergrande plans to use the cash proceeds from the disposal to secure the delivery of properties.

Meanwhile, Evergrande said it expects to record a loss of $60.3m (RMB55m) from the disposal.

1 HKD = 0.91 RMB