(Yicai Global) Aug. 24 -- Heavily indebted real estate giant China Evergrande Group is in talks with state-owned holding firm Guangzhou Yuexiu Group to sell Evergrande’s Hong Kong headquarters building.

“The parties have been in talks, but nothing has been finalized yet, as it may take few more days before the leaders make the announcement,” an employee at the Guangzhou-based firm’s listed firm Yuexiu Property Co. investment relations department, told Yicai Global today.

Evergrande’s Hong Kong headquarters building is located in Wan Chai district, Hong Kong’s politics, commerce, tourism and transport center. It covers an area of almost 2,140 square meters, with a total construction area of 32,091 square meters spread over 26 floors. The firm bought it in 2015 for HKD12.5 billion (USD1.6 billion).

Evergrande had been in regulatory talks with People’s Bank of China and the China Banking and Insurance Regulatory Commission, and it would “stabilize the company’s operation with the greatest determination and strength, resolve the debt risks and maintain the stability of the real estate market and finance,” it said in the early morning of Aug. 20.

The pair has already reached the agreement on Aug. 20, Hong Kong’s Sing Tao Daily reported yesterday, noting that Evergrande lowered the selling price to HKD10.5 billion from HKD15.6 billion.

Evergrande founder Xu Jiayin also participated in the negotiations, the Economic Observer’s reported today.

The stock price of Evergrande [HK:3333] gained as such as 8 percent today at HKD4.66 (59 US cents), after closing down 18.5 percent at HKD4.31 yesterday. The stock has lost around 70 percent of its value so far this year.

Editor: Futura Costaglione