Evergrande had started construction, including the building of the Guangzhou Evergrande Football Stadium, which was set to have at least 80,000 seats, it said.
The latest refund will enter a project escrow account designated by the government and will be used to settle debts relating to the deal, Evergrande said.
“It is expected that the group will record a loss of approximately 1.255 billion” yuan over the total book value of the land along with buildings, structures and other items at the site after deducting the refund, Evergrande said.
Evergrande, one of China’s biggest developers, has scrambled to offload assets in recent months, with chairman Hui Ka Yan paying off some of its debts using his personal wealth.
It has also found a potential buyer for its Hong Kong headquarters, according to earlier media reports.
Its troubles are emblematic of the problems rippling across China’s massive property sector, with smaller companies also defaulting on loans and others struggling to raise cash.
Cash-strapped developers have increasingly struggled to deliver projects on time, sparking mortgage boycotts from angry homebuyers in many cities.