Kaisa Group has consented to sell a private site at Kai Tak, when home to Hong Kong’s air terminal, to New World Development—constrained by wealthy person Henry Cheng and his family—and Far East Consortium in an arrangement esteemed at $1 billion as the destitute Chinese property designer tries to turn away an obligation default.
A similarly possessed joint endeavor between New World Development and the Far East Consortium is purchasing the 104,496-square-foot plot at a markdown. It was esteemed at HK$9.8 billion (about $1.3 billion) in June this year. Far East Consortium said in an administrative documenting on Thursday.
The land deal comes as Shenzhen-based Kaisa requests holders from its $400 million 6.5% notes developing on December 7 to trade 95% of the notes for another reminder that will grow in June 2023 at a similar coupon rate. Kaisa possesses half of the Kai Tak plot, gained last year from head honcho Pan Sutong’s obliged Chinese engineer Goldin Financial Holdings.
“Regardless of our endeavors to decrease our advantage bearing obligation in light of unofficial laws, the current sharp slump in the financing climate has restricted our subsidizing sources to address the forthcoming developments,” Kaisa said in the administrative documenting.
The organization is supporting its accounts amid a liquidity crunch set off by the obligation emergency at China Evergrande and exacerbated by a droop in lodging interest in China. The public authority needs designers to pay off past commitments.
Kaisa plans to sell nearly $13 billion worth of properties, incorporating 18 undertakings with 1.45 million square meters of room in Shenzhen, to raise capital after it missed installments on venture items, the South China Morning Post detailed recently.