The Chinese real estate company China Evergrande Group, which suffered from the crisis and sank into record debts, received another new blow. It is to demolish 39 of its buildings in a mega resort built on artificial islands off Hainan Island on China’s southern coast, world media reported.
In a statement to the Hong Kong Stock Exchange, the company, which is struggling with debts worth about $ 300, confirmed that it had received an order to demolish part of its Ocean Flower Island resort on December 30, 2021. The day before, Evergrande asked the stock Hong Kong Stock Exchange to suspend trading in its shares pending confirmation of the demolition order.
Evergrande did not specify the specific reason for the order. According to the state-run Global Times, the criminal notice cites “the company’s illegal means of obtaining a project certificate”. The former property giant has 10 days to demolish its buildings.
The indebted company emphasizes that the demolition notice applies “only” to 39 buildings on plot 2-14-1, located on island № 2 in the resort and “does not include other plots of the Ocean Flower Island project”.
“Our company will actively communicate with the authority in accordance with the guidelines in the order and will solve the problem properly,” Evergrande said in a statement quoted by local media.
Consisting of three artificial islands, Ocean Flower Island is designed to be “the best attraction for cultural tourism”. The resort was created with an investment of about $ 25 billion, according to its own website.
It also says that the mega resort has the largest conference center in the world, with 58 super luxury hotels, theme parks, museums and a huge shopping center. Island № 1 attracted more than 5 million visitors in 2021, according to the Global Times.
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