Oaktree sets sights at another Evergrande trophy asset

Oaktree Capital is risking a showdown with Beijing after moving to seize control of another of Evergrande’s most-prized projects. The Los Angeles-based asset manager has a secured loan against a sprawling tourism resort on the Yellow Sea coast called “Venice”, that would allow it to take control of the land in the event of a default, according to a letter to investors. The move would essentially torpedo the wider restructuring of the embattled property developer, which is struggling under a $305bn debt. Evergrande announced on the Hong Kong stock exchange on Wednesday that it “aims to come up with a preliminary restructuring proposal in the next six months”. If Oaktree attempts to claim the land, which includes a 66m sq ft residential district, it could face a difficult fight in mainland China over the asset because of its strategic importance to Beijing. On Tuesday, Oaktree took control of a sprawling plot in Hong Kong called “Project Castle” after Evergrande defaulted on a loan. The move threw into turmoil a plan to restructure the Chinese developer’s $20bn of offshore debt as it was a crucial piece of collateral in a planned deal for bondholders. The FT (£)