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China Aoyuan to sell assets worth $115 million, Real Estate News, ET RealEstate

China Aoyuan to sell assets worth $115 million, Real Estate News, ET RealEstate
HONG KONG: Chinese property developer China Aoyuan said in a Hong Kong stock exchange filing on Sunday that it would dispose of some of the assets held in its Hong Kong units for HK$900 million ($115.5 million).

An estimated loss of around HK$177 million ($22.7 million) was expected from the disposal of shares in the small developer’s units Double Bliss, Mingwan Investments and Prestige Well. The HK$900 million includes sales of shares and loans.

China’s property sector has been under intense pressure and scrutiny in recent months as China Evergrande Group grapples with possible default.

Last week, it made a last-minute bond payment but that did little to alleviate strains in the country’s wider property sector.

“Having regard to the prevailing market conditions, the directors consider that the disposal represents a good opportunity to realise the value of the properties, enhance the liquidity of the group and generate additional working capital,” Aoyuan’s filing read.

Separately, Chinese developer Sunac China Holdings announced a HK$5.1 billion share sale in a stock exchange filing on Sunday. It will also place shares in its property services unit for HK$2.3 billion.

“The purposes of the placing and the subscription are to further enlarge the company’s shareholder base and optimise the capital structure of the company,” the company said in a statement.

Evergrande, the world’s most indebted developer, has been stumbling from deadline to deadline as it contends with more than $300 billion in liabilities, $19 billion of which are dollar bonds.


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