China Evergrande to sell stakes in four projects to Everbright Trust, Minmetals Trust

 

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Embattled property developer China Evergrande Group said it has signed agreements to sell its stakes in four projects to China Everbright Trust and Minmetals International Trust, according to a filing to the Hong Kong Stock Exchange on Friday

Evergrande will collect 1.95 billion yuan of earlier investment in the projects and resolve about 7 billion yuan of related debts, according to the filing. 

Beijing is encouraging SOEs and large property developers to acquire assets from cash-strapped real estate firms to ease liquidity pressure, and has made it easier for them to raise financing for the deals.

Minmetals Trust last month bought the equity in two projects from Evergrande for a total of 80 million yuan ($12.67 million), in a rare case where a trust company took over assets from a distressed developer. 

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