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LeEco rumored to sell its building in Beijing
Cash-strapped LeEco is rumored to sell its headquarter building in Beijing (in Chinese) off the fourth-ring road with the price at RMB 1.4 billion ($211 million), local media are reporting.
Multiple real estate companies have said that the LeEco building is up for sale. The building covers 20,000 square meters of gross floor area and is priced at RMB 1.4 billion. Selling buildings and properties is one of the approaches LeEco often takes to ease its financial pressure. LeEco is reportedly trapped in a huge amount of debt of RMB 20 billion ($3 billion).
It’s no secret that LeEco’s capital chain is shattering. Over the past few months, courts have approved multiple applications to freeze assets of LeEco’s affiliates and the assets of its founder Jia Yueting. The sale of its headquarter building in Beijing reflects that the once glorious LeEco has plunged deeper into crisis.
However, LeEco’s plan to sell the building may not see a smooth sailing. Last year, Leshi Holdings has mortgaged the building (in Chinese) to seek for a loan of RMB 1.4 billion through a third-party company, and the pledge is still in effect. It’s very difficult for LeEco to find a buyer in the near future.
LeEco’s cash woes worsened when the company expanded to the US last year despite the limited capital and resources. The overstretched overseas expansion is one of the reasons why the firm’s struggling with the capital shortage, making it hard for LeEco to raise more funds.