China Evergrande Leaves Shenzhen Headquarters to Cut Costs, Real Estate News, ET RealEstate

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SHENZHEN: Heavily indebted real estate company China Evergrande Group said on Monday that it had moved from its headquarters in Shenzhen to another property in the city to cut costs and was still registered in the southern Chinese city. .

The company released its statement after Chinese media outlet The Paper reported that Evergrande had moved its headquarters from Shenzhen to nearby Guangzhou.

Evergrande said it moved from the Shenzhen Center of Excellence, which is owned by another company, to a building Evergrande owns in the city, but gave no further details on the new setup.

The world’s most indebted developer, Evergrande struggles to repay more than $ 300 billion in liabilities, including nearly $ 20 billion in offshore bonds deemed to be in cross-default by rating agencies last month after missing payments.

As of Monday afternoon, the company logo had been partially removed from one side of the Center of Excellence. Security guards, accompanied by security vehicles, stood guard, and several of them said the company left the building last month.

In September, the Shenzhen building was the scene of chaotic protests when investors stormed its lobby to demand repayment of loans and financial products.

The Guangzhou government last year sent a task force to Evergrande, sources told Reuters.

Sources also said that lawsuits against the company across China are being heard in a court in Guangzhou, the capital of Guangdong province, where Shenzhen is also located.

Evergrande was founded in Guangzhou and only moved to Shenzhen in 2017.

Protests also began at offices in Guangzhou last Tuesday, with around 100 investors in financial products issued by the company meeting to voice concerns over their money being returned.

Small crowds of protesters have continued to gather near the site ever since, 10 protesters told Reuters.

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