China Evergrande: receivers plan to add value, boost appeal to Hong Kong tower for next auction
- The receivers are said to be planning to bring in new tenants, extend current leases in the 27-storey tower in Wan Chai to attract buyers
- An earlier auction in late October failed to generate bids to match the expectations of its receivers, sources said
The receivers of Evergrande Centre in Hong Kong are seeking to add more value to the 27-storey office-cum-retail tower to increase its appeal to buyers at the next auction, according to people familiar with the plan.
The former Hong Kong headquarters of troubled China Evergrande Group failed to garner bids substantial enough to meet the expectations of the owner when a sale by tender closed in late October, the people said. The property was estimated by real estate agents to be worth at least HK$7 billion (US$897.6 million).
Among other things, the property owner is seeking to bring in new tenants to fill up the lettable space, and is talking to existing occupiers to extend their leases, they added. Efforts are also being made to sign up new advertisers on its giant screen atop the building, they said.
Lightings on the board have been turned off. It previously promoted the Hengchi electric vehicles produced by a manufacturing subsidiary of China Evergrande.
Receivers Tiffany Wong and Kitty Yeung, directors in Hong Kong at global restructuring and management advisory firm Alvarez & Marsal, did not immediately reply to emails seeking comment. Savills, appointed as sole marketing agent in September, also did not reply to a request for comment.
The Evergrande Centre on Gloucester Road was built in 1985 and has a gross floor area of about 345,423 sq ft (32,000 square metres), according to its sale advertisement in September. It includes a lobby, shops, office floors each with a typical size of 12,000 to 14,000 sq ft, plus 55 parking spaces.
