On October 10, the media have reported that the Evergrande Football Stadium plot in Panyu District, which was previously returned by Evergrande Group, was surprisingly sold at the bottom price, and the buyer was none other than Guangzhou Urban Investment.
Back in August this year, Evergrande Group published an announcement on the Hong Kong Stock Exchange, announcing that it had reached an agreement with the transferee to waive the original contract and return the land use rights of the Guangzhou Evergrande Football Stadium. The transferee paid a whopping RMB 5.52 billion yuan as a refund for this.
Entering September, data from the Guangzhou Public Resources Trading Center showed that the Guangzhou Evergrande Football Stadium land parcel re-entered the market after a price reduction, with a bidding reserve price of only 3.155 billion yuan. And in 2020 Evergrande took the land at a price of 6.813 billion yuan, this time the bidding reserve price compared with the original amount of land, the price reduction is as high as 3.66 billion.
In August this year, Evergrande Group once again made an announcement that it signed an agreement with the Guangzhou Municipal Bureau of Planning and Natural Resources to return the land use rights of the Xiecun Sports Facilities and Industrial Plots, and accordingly, the Guangzhou Municipal Bureau of Planning and Natural Resources was required to pay approximately RMB5,520 million as a refund of the transfer premium.
Compared with the listing information in April 2020, the conditions for the Xiecun site, which returned to the land auction market this time, have undergone many changes. For example, the nature of the land was changed to commercial and residential land; the starting price of the listing was reduced from 6.813 billion yuan to 3.155 billion yuan; and the area of the site was increased from 499,100 square meters to 577,700 square meters.
Eventually, the land was won by Guangzhou Chengyi Real Estate Development Company Limited at the reserve price. It is reported that Guangzhou Chengyi Real Estate Development Co., Ltd. is a wholly-owned subsidiary of Guangzhou City Investment.
According to the latest offering announcement, the new bidder will be required to build BA0402042 in accordance with the planning requirements, with a total investment of up to RMB 6.5 billion, of which RMB 2.092 billion has already been invested in the construction and the remaining RMB 4.408 billion will need to continue to be invested. This means that Guangzhou Urban Investment needs to invest an additional 4.4 billion yuan for the soccer stadium project.
