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The
land planning authority in the southwestern city said it was
taking control of the plots, totalling over 300,000 square
meters, as Evergrande had not developed them after holding them
for over a decade.
The notices on the two plots, posted by the authority on Dec.
17, followed the same move by the Haikou city authority early
last week, taking back a plot without compensation in the
country's island province of Hainan.
The Chinese government is calling the shots at Evergrande after
the real estate giant missed payments on two overseas bonds,
triggering a restructuring to deal with its more than $300
billion in liabilities.
The authorities are scrutinising the assets of Evergrande and
its wealthy chairman Hui Ka Yan but expect no fire sale for now,
two sources with direct knowledge of the matter told Reuters
last week.
A government body has taken over Evergrande's soccer stadium in
Guangzhou - set to be the world's largest soccer venue by
capacity - with a view to selling it, another person said last
month, as the developer has halted construction due to a lack of
capital.
Its EV unit China Evergrande New Energy Vehicle Group also said
late last month it had returned undeveloped lands for seven
projects worth a total of 1.3 billion yuan ($203.87 million) to
the government.
Shares of Evergrande fell 9.9% on Monday to HK$1.46, a fresh
low.
S&P downgraded Evergrande on Friday to "selective default" after
the firm missed a debt payment deadline earlier this month,
putting the developer at risk of becoming the country's biggest
defaulter. Fitch has already downgraded the developer to
"restricted default".
($1 = 6.3765 Chinese yuan renminbi)
(Reporting by Clare Jim; Editing by Carmel Crimmins)
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