China Evergrande Group kicked off a process on Saturday to repay investors in its overdue investment products with discounted properties.
Investors who opt for discounted real estate in lieu of cash can start contacting wealth managers for more details, Evergrande’s wealth division said in a post on its Wechat account.
More than 70,000 people bought the products, including many Evergrande employees, Bloomberg reported earlier, citing an executive of Evergrande’s wealth division. About 40 billion yuan of the products are now due, Caixin reported.
In an effort to steer investors away from cash repayments, the company is pushing steep discounts on property assets. Investors can invest in residential housing units at a 28% discount, offices at a 46% discount, and stores and parking units at 52%.
For the cash option, investors can choose to be repaid 10% of their principal and interest every quarter, with full repayment in two and a half years, Bloomberg reported earlier. Investors in the products can also opt for payment discounts on residential units they’ve already purchased, according to the revised plan unveiled Monday Sept 13.
