Evergrande's $1.7 bn Hong Kong headquarters sale flops as buyer withdraws

Chinese state-owned Yuexiu Property has pulled out of a proposed $1.7 billion deal to buy China Evergrande Group’s Hong Kong headquarters building over worries about the developer's dire financial situation, two sources said.

 

The collapse of the talks for the landmark building’s sale is another setback for cash-strapped Evergrande.

 

Yuexiu, based in Guangzhou, was close to sealing a deal in August to acquire the 26-storey China Evergrande Centre in Hong Kong’s Wan Chai that serves as Evergrande’s local headquarters, said the sources. But the deal faltered after Yuexiu’s board opposed it over worries that Evergrande’s indebtedness would lead to further complications.