Billionaire Li Ka-shing’s real estate unit has bid for China Evergrande Group’s Hong Kong headquarters as the struggling Chinese developer seeks to raise much-needed funds ahead of a planned debt restructuring.
CK Asset Holdings Ltd. submitted a tender offer for the Wan Chai building, according to a statement Thursday. The building is valued at around HK$9 billion ($1.15 billion), the Hong Kong Economic Times reported, citing market estimates.
The defaulting developer is looking to boost its cash ahead of a restructuring that could be announced as early as the end of this month. Struggling with around $300 billion in debt, Evergrande joins a group of developers who stumbled after China clamped down on borrowing by over-indebted property companies.
Yuexiu Property Co. dropped plans to buy the headquarters last year, in a deal valued at around HK$10 billion, according to the Economic Times report.
Evergrande’s restructuring proposal could shed light on the government’s treatment of offshore bondholders, as well as plans to dispose of company assets and potential debt haircuts or extensions deadline.