Le Eco Auctioning Beijing Mall on Taobao for RMB2.3B
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Chinese tech firm LeEco has put a Beijing shopping centre up for auction on Chinese e-commerce platform Taobao. Experiencing financial difficulties, yet determined to uphold its online trading practices, the firm has listed the 50,000sqm Beijing Shimao Gongsan Plaza at a reserve of RMB2.3 billion (US$334 million). The move follows legal action by mortgagor China Citic Bank against LeEco for failing to meet repayment obligations.
The auction opens on Taobao’s distressed asset channel, which saw an 88 per cent rise in listings in October against the backdrop of China’s enormous bad debt market. Under supervision of the courts, the auction will start on January 7 at 10 am and run for 24 hours.
The property was expected to sell last year to leading Chinese developer China Vanke, but was not traded due to unmatched expectations in price.
Questions & Answers
Q.Why is LeEco selling the Beijing shopping centre?
Why is LeEco selling the Beijing shopping centre?
LeEco is experiencing financial difficulties and has faced legal action from China Citic Bank for failing to meet its repayment obligations. The auction is a consequence of these financial pressures.
Q.What is the starting price for the Beijing Shimao Gongsan Plaza?
What is the starting price for the Beijing Shimao Gongsan Plaza?
The shopping centre, which is 50,000 square metres, has been listed on Taobao with a reserve price of RMB2.3 billion, equivalent to US$334 million.
Q.Who was expected to buy the property last year?
Who was expected to buy the property last year?
Leading Chinese developer China Vanke was expected to purchase the property last year. However, the sale did not proceed because the price expectations of the parties involved did not match.
Q.When will the auction for the property take place?
When will the auction for the property take place?
The auction, which is being supervised by the courts, is scheduled to begin at 10 am on January 7. It will remain open for bidding for a period of 24 hours.