HONG KONG, Oct 15 (Reuters) – Chinese state-owned Yuexiu Property (0123.HK) has pulled out of a proposed $1.7 billion deal to buy China Evergrande Group’s (3333.HK) Hong Kong headquarters building over worries about the developer’s dire financial situation, two sources said.
The collapse of the talks for the landmark building’s sale is another setback for cash-strapped Evergrande which has been scrambling to divest some assets to repay creditors knocking on its doors. With more than $300 billion in liabilities, it has already missed three rounds of interest payments on its international bonds. read more
Yuexiu, based in the southern city of Guangzhou, was close to sealing a deal in August to acquire the 26-storey China Evergrande Centre in Hong Kong’s Wan Chai district that serves as Evergrande’s local headquarters, said the sources.
The deal, however, faltered after Yuexiu’s board…
