Check out the man-made island where Evergrande was ordered to tear down 39 buildings

• Evergrande was ordered to demolish 39 buildings on its man-made island.
• The embattled real estate developer has poured nearly $13 billion into its Ocean Flower Island.

Evergrande, an embattled Chinese real estate developer, confirmed on Tuesday that it was ordered to tear down 39 buildings on its man-made island in China's southern Hainan province, according to a report from The Wall Street Journal.

Chinese authorities in the province have given the company 10 days to demolish the buildings, according to a notice that was obtained by The Journal and dated December 30. The developer has 60 days to file a potential appeal. The South China Morning Post cited media reports on Monday that an illegally obtained permit had been revoked by the provincial government which required the buildings to be dismantled.

An Evergrande spokesperson did not respond to a request for comment and Insider could not reach Hainan provincial authorities for comment.

Over the past 12 years, Evergrande has invested nearly $13 billion into the artificial archipelago or group of islands known as "Ocean Flower Island," The Journal reported. The potential demolition of its 39 buildings on the island represents one of many setbacks that the world's most indebted developer has faced over the past year. Evergrande is currently struggling to repay over $300 billion in liabilities.

The cluster of man-made islands were designed to emulate the shape of a peony and made up of three flower-shaped islets. The center of the cluster was constructed as a major business and tourism hub.

The project was over a decade in the making and opened in late 2020 as the world's largest man-made tourism island, spanning 1,980 acres. The Ocean Flower development is the largest project since Dubai opened its man-made archipelago, Palm Island, in 2009

The Ocean Flower project encompasses houses and hotels, as well as business and tourist opportunities, including a roughly 1.1 million square foot convention center built to resemble giant blooming peonies.

Ocean Flower Island, also known as "Haihua" in Chinese, has attracted over 5.5 million tourists since it opened, according to China's stateside publication, South China Morning Post. Last month, local Chinese government said the development was harming the marine environment, including causing mass damage to coral reefs.

The center of the archipelago has 28 major business hubs.

The complex offers an array of museums, as well as several amusement parks, including a fairy-tale world and water park.

It also has several more relaxing options for tourists, including a botanical garden and hot springs.

While many of the tourist and business options are located at the center of the archipelago, housing makes up the outskirts of the structure. According to a 2019 construction plan from the Danzhou government that was obtained by South China Morning Post the maximum total population of the three islands was estimated at over 200,000.

The stateside publication reported that Evergrande told residents of the island where 60,567 apartments had been delivered to buyers that the demolition will not impact residential structures.