Selling a house to pay off debts Xu Jiayin mortgages his own luxury home to cash out 247 million yuan: 1.97 trillion yuan is still far behind
In recent times, Evergrande Group has been in a deep debt crisis, even facing a crisis of collapse at any time, with a total debt of 1.97 trillion yuan, ranking first among all Chinese real estate companies in debt.In order to repay the debt as soon as possible and maintain the normal operation of the company, Evergrande has also recently figured out various ways to obtain funds. With almost lost revenue capacity, the only way out seems to be the sale of assets.
According to reports, recently Evergrande has repeatedly sold real estate, equity, subsidiaries, etc. under its name in exchange for funds. Regrettably, the acquisition of Evergrande’s property, which was previously considered the most valuable Evergrande at present, was confirmed to be terminated. Transactions worth more than RMB 16.4 billion fell apart.
However, Evergrande is still actively seeking a way out, including Xu Jiayin himself.
According to local media reports, Xu Jiayin, chairman of the board of directors of Evergrande Group, in Hong Kong, mortgaged a luxury home worth hundreds of millions of Hong Kong dollars to China Construction Bank (Asia) on the 19th of this month. Xu Jiayin can cash out about 247 million yuan to repay debts.
According to documents from the Hong Kong Land Registry, on October 19, the Buli Path No. 10 House B pledged to China Construction Bank (Asia). According to the current mortgage guidelines of the Hong Kong Monetary Authority, if the mortgage limit of the property held by the company is about 40%, about 300 million Hong Kong dollars (approximately 247 million yuan) can be cashed out.
But it should be noted that this 247 million is not worth mentioning for the 1.97 trillion arrears, let alone paying off the arrears. At present, Evergrande is still in a very difficult situation.
There are also reports that on October 22, Xu Jiayin announced the three major strategic decisions of Evergrande to resolve risks and self-rescue at the Evergrande Group’s resumption of production and production: First, unswervingly, go all out to achieve the resumption of work and production to ensure the delivery of the building. ; The second is the full implementation of existing building sales and a significant reduction in the scale of real estate development and construction; the third is the transformation from the real estate industry to the new energy automobile industry within 10 years.
Xu Jiayin also emphasized that, in principle, Evergrande will not buy land within 10 years, but now it cannot sell land at a low price.