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China’s Evergrande pays clients with properties for its wealth management products

BEIJING, Sep 19 (Reuters) – Seriously cash-strapped Chinese real estate developer Evergrande Group has started paying investors in its wealth management products with real estate, a unit of its main company Hengda Real said. Estate Group Co Ltd.

Evergrande, which owes more than $ 300 billion, is in a liquidity crisis that has put it in a race to find funds to pay off its many lenders and suppliers.

The company has to pay on Thursday $ 83.5 million of an interest maturity on a bond.

The company said in a post on WeChat dated Saturday that investors interested in trading wealth management products for physical assets should contact their investment advisers or visit local offices.

Financial news outlet Caixin reported on Sunday that there are an estimated 40 billion yuan ($ 6 billion) in Evergrande’s wealth management products, which are often in the hands of retail investors.

Payment methods and specific details are subject to local conditions, a customer service representative told Reuters on Sunday.

Under a proposal previously seen by Reuters, which Evergrande did not confirm, investors in wealth management products can choose between discounted apartments, offices, commercial premises or parking lots for redemption.

Earlier this month, an exchange filing showed that Evergrande had paid 219.5 million yuan in overdue debts to supplier Skshu Paint Co Ltd with apartments in three unfinished real estate projects.

(1 dollar = 6.4655 Chinese yuan)

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