(Bloomberg) — Nothing symbolizes the demise of China Evergrande Group like the Hong Kong tower that it bought for a record $1.6 billion. Once a jewel in the developer’s crown, creditors are still trying to sell the building almost a year after seizing it.
Refurbishments and a name change to steer clear of the disgraced defaulter have failed to convince buyers at a time when Hong Kong’s office market is going through its worst downturn in years.
Evergrande’s financial woes even started to affect operations at the building, which sits in Hong Kong’s busy Wan Chai district. Three of its 11 elevators weren’t running because the developer had failed to pay the contractor, said Godfrey Cheng, deputy senior director at Savills (Hong Kong), an agent for the receivers. Maintenance work has since begun, Cheng said.
Crowdfunded Real Estate Deals Unravel as Investor Funds Vanish (should’ve stacked the shiny instead)
Hundreds of regular investors who together put up $63 million to buy pieces of Atlanta and Miami commercial real estate have allegedly seen their funds disappear.
Two deals orchestrated by CrowdStreet Inc., a real estate investment company that crowd-sources funds from relatively wealthy individuals, have fallen apart as investors’ money vanished from bank accounts earmarked to buy equity in buildings, according to bankruptcy court papers.
h/t Simian_Stacker