China Vanke sells Shenzhen land plot at loss-making reserve price

HONG KONG, May 27 (Reuters) – Cash-strapped China Vanke (000002.SZ), opens new tab has sold a Shenzhen land plot via auction for 2.24 billion yuan ($309.18 million), a filing on Monday showed, more than 27% below the price it paid for the same 19,000 square-metre block nearly seven years ago.

Vanke is working to raise funds after saying last month it is facing short-term liquidity pressure, one of many companies to have been caught up in a broad-based cash crunch in China’s crisis-hit real estate sector.

Its largest shareholder, state-owned Shenzhen Metro, and Shenzhen-based company Baishuoyinghai jointly bought the plot at Vanke’s reserve price, according to an online filing, opens new tab uploaded to a trading center in Shenzhen on Monday.

Theirs was the only bid for the asset, the same filing, made after mainland stock market was closed, showed.

Source: REUTER