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China Vanke buys land assets of bankrupt Guangdong trust for $8.13 bln -report
June 29, 2017 / 10:25 AM / 3 months ago

China Vanke buys land assets of bankrupt Guangdong trust for $8.13 bln -report

HONG KONG, June 29 (Reuters) - China Vanke Co Ltd has won the right to buy companies holding assets including land for 55.1 billion yuan ($8.13 billion), in a landmark auction of equity rights in China, state media reported on Thursday.

The companies were subsidiaries of Guangdong International Trust & Investment which in 1999 became China’s first non-bank financial institution to enter bankruptcy.

The auction was the first to use an exchange platform to dispose of property as part of a legal procedure, Xinhua news agency reported, citing Guangdong Assets and Equity Exchange Group.

The assets involved land situated in central Guangzhou, a top-tier city in southern China, with the biggest land parcel measuring about 200 hectares, the news agency said.

China’s second-largest property developer by sales bid 23 percent over the assets’ listed price, beating bids from eight peers, Xinhua reported. Another media outlet, Guangdong News, said the company would use the land for residential projects.

China Vanke did not immediately respond to a Reuters request for comment.

Developers in China are increasing resorting to mergers-and-acquisitions to build land banks as city governments impose restrictions on land auctions. ($1 = 6.7798 Chinese yuan renminbi) (Reporting by Clare Jim; Editing by Christopher Cushing)

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