Daily Management Review

Evergrande: Work has resumed on 92% of sites


Chinese property developer Evergrande, which is teetering on the brink of default, has announced that work has resumed on 92 per cent of its properties. Billionaire Hui Ka Yan, who founded the company, has promised that buyers will receive the keys to 39,000 flats this month.

Evergrande has resumed work on 92% of its housing sites (up from less than 50% in September) and the number of workers on construction sites has increased by 31% to 89,000 in three months, the press office of the lending Chinese property developer said. "As we successfully resume work, production and construction, we will be able to hand over homes to buyers, resume sales and operations and pay off debts," said the company's chief executive, billionaire Hui Ka Yan (quoted by Bloomberg).

The billionaire noted that more than 80% of Evergrande's business partners, including building material suppliers, have resumed cooperation with the company. Nevertheless, he stressed, it must "ramp up full speed" to hand over the keys to 39,000 flats in 115 housing complexes to buyers this month. Evergrande has been handing over fewer than 10,000 keys to new homes every month since September.

At the end of June, the Chinese developer had 778 projects in 233 Chinese cities.

According to the agency, Evergrande's debt obligations exceed $300 billion. In addition to liabilities to banks, suppliers and individual investors, the company has $7.4 billion in bonds maturing in 2022. On Tuesday, December 28, the company is due to pay $255 million in coupons on these bonds.

source: bloomberg.com