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Report: China Evergrande takes over 7B-yuan commercial project in Shanghai

China Evergrande Group is said to have taken over a 7.0 billion yuan stalled commercial complex project in Shanghai, according to a report by Chinese digital news outlet ThePaper, citing changes in ownership registration information.

The Chinese developer first became a new shareholder of the Hongyuan Shengshi International Cultural City project in April.

The project's legal representative was also changed to Luo Bin, deputy general manager of Evergrande Shanghai, the developer's unit in the city.

The 541,000-square-metre development in Shanghai's Hongqiao business district is located near the city's Hongqiao International Airport, and was originally owned by a consortium consisting of Shanghai's Red Star Macalline Group Corp. Ltd., Shenzhen-based Shengshi Wanxiang Investment Management and Shouyuan Investment Management, according to ThePaper.

The consortium purchased the plot housing the development in 2011 for some 3.0 billion yuan, but construction works ceased after the main structure was topped off in 2015.

The halting of the project was due to several changes in major shareholders, according to the May 16 report. Shengshi Wanxiang was the sole remaining shareholder until Evergrande picked up a stake in April.

Evergrande's spokesperson declined to comment on the project and transaction when contacted by S&P Global Market Intelligence.

The development, which is the largest single project in the Hongqiao business area, has a ground construction area of 269,000 square meters and an underground construction area of 272,000 square meters, according to Hongqiao business district's website.

As of May 17, US$1 was equivalent to 6.37 yuan.