Evergrande's Shenzhen project taken over

China Evergrande's (3333) redevelopment project on Henggang Street in the Longgang District of Shenzhen has been taken over by Shenzhen Metro Group, China Vanke's (2202) largest shareholder, official tender documents showed.

The total planned investment would come in at 46.4 billion yuan (HK$52.8 billion), the documents showed.

It is the largest redevelopment project in Henggang, with a residential area of 1.32 million square meters.

This comes as Evergrande's restructuring plan has won over some of its biggest bondholders, including several top names specializing in troubled credits.

Redwood and Saba are among funds endorsing the plan hammered out by the property-development giant, according to people familiar with the matter.

Still, under the proposed terms, Evergrande needs to win over about 75 percent of bondholders for the overhaul to proceed. Market watchers will get their first sense of how much more work would need to be done come April 27, the deadline for outside investors to throw their hat in with the group and receive an extra sweetener known as a consent fee.

Funds managed by Ellington were also part of it.

"There was a real forensic analysis done. It was a very thorough process with a lot of transparency," said Ellington portfolio manager Eric Cole. "I feel better as a creditor in China than I do in Switzerland," he added, a reference to the losses imposed on Credit Suisse bondholders last month as part of the bank's forced sale.