Vanke sells headquarters project for $309 million to raise cash
China Vanke Co sold an unfinished property project once designated as its new headquarters to buyers including a major shareholder
(Bloomberg) -- China Vanke Co. sold an unfinished property project once designated as its new headquarters to buyers including a major shareholder, the developer’s latest effort to divest assets and boost liquidity.
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Vanke sold the commercial real estate project in Shenzhen, which spans an area of almost three soccer fields, for 2.24 billion yuan ($309 million), according to an auction result posted Monday at a government-backed land trading center. That’s less than the 3.1 billion yuan it paid for the plot in 2017.
The joint buyers include state-owned Shenzhen Metro, Vanke’s largest shareholder, according to a company statement sent to Bloomberg. They purchased the plot at the starting price. The deal will help Vanke reduce the use of funds in non-core assets, it added.
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State-backed Vanke has become the latest flashpoint in the nation’s property crisis. Still, the company has raised almost $4 billion in bank loans in recent weeks, and government efforts to support the housing market have also improved its prospects.
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