Archinect - News

China will build replacement for Gensler soccer stadium design in Guangzhou following Evergrande debt scramble

2024-03-19T11:51:00-04:00

Chinese state-owned construction contractor will build China’s largest soccer park in Guangzhou on the site where struggling Chinese property developer China Evergrande Group was supposed to build its soccer stadium. China Construction Fourth Engineering Division won the engineering procurement construction contract to build the Guangzhou Football Park with a CNY2.4 billion (USD328 million) bid, the unit of China State Construction Engineering announced on its official WeChat account yesterday.

The site was originally meant for a 100,000-seat stadium designed by Gensler. Evergrande, the developer now embroiled in a Lehman Brothers-like freefall, had already begun construction before the project was halted and eventually taken over by the government in 2021. The new design from the Guangdong Architectural Design and Research Institute has a reduced capacity of 73.000, making it still the largest soccer-only stadium in China.

Previously on Archinect: One of China's largest property developers is roiled in a Lehman-esque debt spiral

The estimated cost of the original design it replaces was $1.7 billion. Gensler, meanwhile, has begun preliminary work assessing the potential for a new stadium on the site of a disused Westfield shopping center in its hometown of San Francisco.

China Evergrande ordered into liquidation after $300 billion debt spiral

2024-01-30T19:15:00-05:00

A court in Hong Kong has ordered the winding up of Evergrande Group, the world’s most indebted property developer, dealing another blow to investor confidence as China’s ailing real estate sector continues to weigh on its economy. The liquidation order, made by the city’s High Court on Monday, comes after the embattled Chinese real estate giant and its overseas creditors failed to agree on how to restructure the company’s massive debt during talks that lasted for 19 months.

Evergrande’s liquidation could also set the stage for an unprecedented political showdown between Hong Kong and the mainland, as Reuters speculated on Monday.

The company had amassed over $300 billion in public and private debts since being ordered into negotiations in 2021. Overseas creditors are currently owed a reported $25 billion. Dexter Roberts, a senior fellow at the Atlantic Council, was one of several experts to compare its collapse to the failure of Lehman Brothers in the American market in 2008.

Chinese government takes control of incomplete, $1.7 billion Evergrande Guangzhou Football Stadium

2021-12-06T19:11:00-05:00

Chinese authorities have taken over the Gensler-designed, under-construction Evergrande Guangzhou Football Stadium, commissioned by indebted property developer Evergrande, which was due to become the world’s largest football stadium by capacity, according to Reuters.

The Chinese government will either sell or take over the stadium via the state-owned Guangzhou City Construction Investment Group. As reported by Reuters, construction on the stadium has been halted for at least three months, in which Evergrande has been struggling to meet repayments on over $300 billion of debt.

Previously on Archinect: One of China's largest property developers is roiled in a Lehman-esque debt spiral

The Gensler-designed, 100,000-capacity soccer stadium was planned to be the home ground for professional club Guangzhou Evergrande. Work on the arena began in April 2020, with an estimated cost of $1.7 billion. It was set for completion by the end of 2022.

One of China's largest property developers is roiled in a Lehman-esque debt spiral

2021-10-19T16:54:00-04:00

Worries about the giant developer’s ability to repay its debt and a total of $300 billion in liabilities have put global investors on edge. Beyond the company itself, there are worries about a potential spillover into the rest of China’s real estate industry or economy.

Evegrande missed another round of payments last Monday, setting it back again ahead of Wednesday’s scheduled $47.5 million interest payment. Investors are blindly looking for a government bailout, but financial experts remain uncertain as to its prospects. The company says it plans to go forward with a 12 billion yuan ($1.86 billion) football stadium project from Gensler in spite of the huge debts it owes to more than 250 different institutions worldwide.

Evergrande was recently behind the financing for Harvard GSD’s HouseZero initiative. Currently, the company has an estimated 800 projects underway in mainland China in addition to plans announced earlier in the year that would provide 268 individual units in a $4 billion “Versailles-like” villa along Hong Kong’s Yueng Long wetland.

London’s Walkie Talkie Tower, previously titled "UK's worst building of the year", sells for a record $1.7 billion

2017-07-27T12:46:00-04:00

The price, a record for a single U.K. office property, is remarkable given that the building will face ongoing maintenance costs, JPMorgan Chase & Co. analysts including Tim Leckie wrote in a client note. LKK, which sells Chinese herbal medicines, paid a 13 percent premium to book value for the property even as Land Securities’s shares trade at a 26 percent discount, he said.

Land Securities Group Plc and Canary Wharf Group Plc agreed to sell the Rafael Viñoly-designed Walkie Talkie for 1.28 billion pounds ($1.7 billion) to Hong Kong-based LKK Health Products Group, founded in 1992 by the Lee Kum Kee family, whose primary business sells a variety of condiments.

Asian investors have poured into London’s office market in the year since the Brexit vote, capitalizing on the weak pound to buy towers for record-high prices. Hong Kong real estate developer C C Land Holdings paid 1.15 billion pounds for the Cheesegrater tower in May.

Frank Gehry's Schnabel House updated and sold for $9.5M

2013-01-26T11:42:00-05:00

Built in 1989, the five-bedroom, five-bathroom residence has been described as "a village that looks inward." There is a main house, an office, a guesthouse and a garage-and-gym structure with a breezeway. The half-acre of grounds include a reflecting pond, a swimming pool and an olive orchard.

China's Real Estate Bubble May Have Just Popped

2012-02-15T01:19:00-05:00

In a few cities, such as coastal Wenzhou and coal-rich Ordos, the collapse in property prices has sparked a full-blown credit crisis, with reports of ruined businessmen leaping off building rooftops; some are fleeing the country.

Prospects just few years ago looked great and China had jobs for everybody who were laid off in American market. But now the wind has changed direction. People who were speculating in Ordos and the like places are no where to be found and the bubble is about to burst.