Debt Quagmire: Xinghuacun Real Estate Division Overdue on Several Trust Loans, Trusts in Default

Another real estate company in trouble leading to trust defaults, and another example of the rush to set up real estate businesses post-2008 during the lending frenzy/stimulus. Xianghuacun is a wholesale dry goods company that sells seasonings, among other goods, and it is among the top companies in its industry. In 2009, it set up a real estate division, which is now the source of their trouble.

杏花村置业深陷债务泥潭 北京融典、新华信托踩雷 (Xinghuacun Real Estate Enters Debt Quagmire Beijing Rongdian and New China Trust Step on a Land Mine)

latest 21st Century Business Herald reporter was informed of Tengzhou in Shandong Zaozhuang Xinghuacun Estate Co., Ltd. (referred to as "Xinghuacun home" under) has multiple debts into a quagmire, a number of financing overdue. This was established in 2009 during the peak of the real estate property company, has within a few years after the development of large-scale borrowing, after nearly two years of strict regulation of real estate, capital chain is currently under pressure.

Business information, Heng Fa Chuen home was established in January 2009, the registered capital of 50 million yuan, the legal representative Xuqing Fang, the main start-up market; property management; real estate development and sales.

It is understood that in the list of creditors Xinghuacun home on the banks, private equity funds, private lending, trust, where the concern is, the Xinhua Trust also in his column a few years ago, this sharp increase in trust real estate projects, 2013 years, have exposed multiple items from breach of trust, sequelae increasingly apparent.

Capital chain pressure

21st Century Business Herald reporter was informed, before Xinghuacun home, the company's actual controller 徐庆芳 started to operate a wholesale dry goods, the main platform for doing odd condiment Tengzhou Xinghuacun Trading Co., Ltd. (referred to as "dry Xinghuacun" below).

Business information, Heng Fa Chuen dry founded in 2003 with registered capital of 39 million, the same as the legal representative Xuqing Fang, operates mainly agricultural and sideline native products, textiles, general merchandise, clothing and footwear, such as wholesale and retail.

It is understood that in Tengzhou in Shandong is the dry seasoning market concentration, as is currently one of the five dry goods wholesale base miscellaneous sea.

In the early 2000s he founded at the beginning of the dry Xinghuacun only one million yuan registered capital, after several years of development, before and after 2009, revenue has been ranked Xinghuacun dry forefront of similar local businesses.

Financing Available material Xinghuacun a 21st Century Business Herald reporter obtained show that as of early 2012, the total Xinghuacun dry Tengzhou assets over 1 billion yuan and net assets of 773 million yuan, in 2011 net profit of more than 100 million yuan, operating results are more rosy.

Sea on dry goods wholesale dry goods Xinghuacun burgeoned after selecting a real estate development intervention in housing prices skyrocketing, bursting real estate industry boom in 2009, the establishment of the above dry Heng Fa Chuen Heng Fa Chuen home real estate company, which shareholders in addition to dry Xinghuacun , also includes natural Xuqing Fang, Huangxiaohe positive.

It is understood that the main representative projects include Tengzhou City Heng Fa Chuen Heng Fa Chuen dry market commercial (one, two, three) Project ", with its building area of ​​210,000 square meters, is one of the largest dry cargo market, only this together Engineering, Heng Fa Chuen dry has invested over 700 million yuan.

In addition to dry goods market, then, is also involved in Heng Fa Chuen home residential development projects include "apricot Teng · International", the latter as two town 36-storey high-rise, one of the tallest residential district Tengzhou single project investment is more than 600 million.

Make a huge investment in real estate on the dry Xinghuacun facing unprecedented financial pressure, 21st Century Business Herald reporter learned exclusively, which has carried out a mortgage through the Agricultural Bank of China, Shanghai Pudong Development Bank and other banks Jinan Branch, then, with further increase funding pressure large, which in turn borrowed the trust, such as the high cost of private equity funds.

However, leaving dry Xinghuacun unexpected is that after 2011, a significant tightening of the real estate market in the country, the initial development of the project is facing tremendous selling pressure. It is understood that a number of real estate projects currently Xinghuacun dry goods are still in the sales.

Xinhua Trust Trust loan contract dispute now

Recently, there are various types of financial investor community reflects its original investment in early April 2014 due "in the business of wealth - Financial Code Capital - Longding sixteen Tengzhou Xinghuacun partnership fund" (hereinafter referred to as "Xinghuacun Partnership Fund ") breach of contract has occurred.

According Recommend material, a product that was established in early 2013, plans to raise capital of 50 million yuan, the annual yield ranging from 10% -13%, raising funds for investment in Tengzhou Xinghuacun handyman cold sea cargo condiment market construction projects.

"This phase of the project to more than 100 million ultra-raised, home Xinghuacun end-use of funds is about 100 million, the fund spent more than 20 million, is currently coordinating Xinghuacun home repayments." Xinghuacun Partnership Fund Investment Committee, a person said.

21st Century Business Herald reporter, above partnership fund management companies as Beijing Financial Code Investment Management Limited (hereinafter referred to as "Beijing Financial Code"), May 27, reporters call the company's official phone, the other said Beijing Financial Code has moved out of the current office space is for another company.

For the specific case of financial typical financing, 27, reporters call a multi-Xinghuacun home, Heng Fa Chuen dry multiple office phone, or called disabled or no answer.

Xinghuacun dry financing disputes recently faced far more than this, it is understood, to get to know in the course of their dry goods wholesale business banking partner of the Agricultural Bank, Shanghai Pudong Development Bank, etc., because the loan is overdue, have recently also apply to the court in Shandong asset preservation.

In addition, 21st Century Business Herald reporter was also informed that the, Heng Fa Chuen creditors also appeared Xinhua Trust figure, the latter access to financing at the peak of the dry Xinghuacun present, because trust loan contract dispute, then sent home and Heng Fa Chuen Xu Qingfang courts.

Sequelae Xinhua Trust a few years ago was still the era of the real estate trust leap from time to time broke out in 2012, the succession of its exposure to a variety of real estate projects default. 2014, the project suffered downtime Hangzhou Xin Hua Yuan, Heng Fa Chuen home project is putting a risk cases.

Xinghuacun Realty Trust loans for project progress, the 27th, the reporter called the China Trust, as of press time, the other not be replied.

1 comment:

  1. "__________ industry, or property developer?" That question never gets old. Look through the HKEX listings and ask yourself for each company that question... for example, Hong Kong Ferry Co: "ferry company, or property developer?" Invariably the correct answer is always the latter.

    - Luke