Investing.com - Evergrande Real Estate Group Ltd (HK:3333) received some focus on Wednesday in Asia after a local newspaper reported that the company raised rents of its center in Wan Chai by 321% to boost the estimated value of the property.
The estimated value of the China Evergrande Centre stood at HK$22.5 billion ($2.87 billion), up nearly 80% from the price the company paid to acquire the building from Chinese Estates Holdings (HK: 127) in 2015, Ming Pao reported citing a "recommendation document."
The leap in value may stem from the dramatic increase in rent, which is expected to push Evergrande’s estimated rental revenue from less than HK$200 million last year to HK$362 million this year and as much as HK$730 million by 2028, according to the article.
On top of the rent price for offices, Evergrande also raised prices for the rent of carparks by 110%.