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One of China’s largest property developers is roiled in a Lehman-esque debt spiral

one-of-china’s-largest-property-developers-is-roiled-in-a-lehman-esque-debt-spiral

​Worries about the giant developer’s ability to repay its debt and a total of $300 billion in liabilities have put global investors on edge. Beyond the company itself, there are worries about a potential spillover into the rest of China’s real estate industry or economy.

Evegrande missed another round of payments last Monday, setting it back again ahead of Wednesday’s scheduled $47.5 million interest payment. Investors are blindly looking for a government bailout, but financial experts remain uncertain as to its prospects. The company says it plans to go forward with a 12 billion yuan ($1.86 billion) football stadium project from Gensler in spite of the huge debts it owes to more than 250 different institutions worldwide. 

Evergrande was recently behind the financing for Harvard GSD’s HouseZero initiative. Currently, the company has an estimated 800 projects underway in mainland China in addition to plans announced earlier in the year that would provide 268 individual units in a $4 billion “Versailles-like” villa along Hong Kong’s Yueng Long wetland. 

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