Several Chinese developers owe more than 1 billion yuan ($137 million) in commission fees to property agency Centaline’s mainland China unit, the Hong Kong company said in a statement.
(Bloomberg) — Several Chinese developers owe more than 1 billion yuan ($137 million) in commission fees to property agency Centaline’s mainland China unit, the Hong Kong company said in a statement.
Centaline’s subsidiary in the Chinese city of Shenzhen was unable to pay its employees their commissions because of the overdue payments, according to a South China Morning Post report on Sunday, which cited a leaked company document circulating online.
Centaline is taking legal action against the property developers, including China Evergrande Group, Kaisa Group Holdings Ltd. and Shimao Group Holdings Ltd., to retrieve 535 million yuan allegedly owed to it, the SCMP reported, citing the document signed by the firm’s Chief Executive Alex Shih on Aug. 11.
The property agency’s statement confirmed the amount and said Chinese courts have already ordered over 400 million yuan to be paid to Centaline, while claims for 135 million yuan are awaiting ruling. It has set up a team to recover the money.
It has been paying its staff their salaries on time, the SCMP cited Centaline as saying, but the company was unable to pay commissions since these were traditionally paid only when it had received money from developers.
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