Changsha Developer Funding Chain Broke and No One Will Help

A developer in Changsha faces a cash crunch and can't find any help, so Hunan Jiulong has to raise funds on its own.
Although the property market over the first half of 2014 data not yet released, but the real estate industry is encountered since 2008 the biggest crisis, this is the general consensus of the industry.

In late June, Changsha called "Kowloon · Link Shi sink" estate developers because of funding strand breaks and the news spread quickly on foot, which allows owners to Kowloon · Link REIT III's official worried, they go to the construction site, found that three projects have been suspended, not only that, the developer located in Fuchu Gordon Road office has also been closed.

Developers Real Estate Development Co., Ltd., Hunan Province, Kowloon (hereinafter referred to as Kowloon Company) Zhou Min, general manager, announced that they were not running, project stopped because of outstanding payments in the construction side, currently experiencing difficulties funding strand breaks, but are attracting investment.

However, Zhou Min, in answer to " Daily Economic News "reporter, is a bit pessimistic, he said, no one would help me, and finally on our own.

Hu, general manager of Hunan Centaline governance steel believes that the situation in Kowloon companies with funding strand breaks, and now have a direct relationship with the Changsha market competition. "It is not from house to sell, the cost is too high, some small real estate financial strength is not strong, it is prone to problems."

It is understood that the new Changsha current housing inventory reached 11.32 million square meters. HU Zhi Gang said, according to the first half of this year's sales pace, stocks need to digest these 17 months, exceeding the alert level.

Marketing center, the construction side has been evacuated

Kowloon · Link Shi sequestration projects located in Changsha Yuelu District Town with a Bachelor Village, Kowloon Development Company in Hunan, the only real estate project. Kowloon company was founded in July 2006, the registered capital of 90 million yuan, the legal representative of Yang and Chao, who is also executive director of Kowloon Construction Group and Zhejiang Shaoxing urban construction real estate company chairman.

Kowloon, the company has achieved collar Shi Hui 115.8 acres of land for the project in 2007, planning a total construction area of 130,000 square meters. Since 2011, has launched a Phase I villas and II-rise buildings. Currently under construction and sales for the three projects.

June 30 morning, the "Daily Economic News" reporter went to Kowloon · Link REIT's official marketing center, marketing center and saw the door has been firmly nailed to pieces of wood, and marketing center adjacent to several stores have been closed. According to a nearby store owners, as early as more than a week ago, the marketing center has been closed.

A couple of hundred meters apart and marketing center is Kowloon · Link Shi Hui Phase III construction site, and now here's the hustle and bustle had no past, appears deserted, the construction side of the project troops had been evacuated. A staff member Kowloon · Link REIT II properties Shi said three construction workers in early June, has been shut down.

Construction side and marketing centers have been evacuated immediately fermented into developers foot Kowloon company news, and spread among the owners, so that these owners have to pay for anxiety.

Mr. Liu is one of them, he told reporters last December, his 4,500 yuan / square meter Kowloon · Link Shi Hui bought a set of more than 70 square meters in three residential. After paying the money, he would regularly see the progress of the house, in April this year, began to feel that something was amiss. "At the end of last year on the cap, but this year is particularly slow progress of the project."

Until June 21 the day, evacuation and the closure of developer marketing center construction side, so he began to get nervous. "June 20 developers working on the second floor office at the scene had been evacuated while they Xiangfu Road office, has also been drained away." Liu said.

Owner surnamed Tang told reporters on June 18, he was still the center of the field of marketing swipe nearly 170,000 yuan, 20,000 yuan plus prepaid early, a total of 190,000 yuan, and then paid the staff formalities can not be said to buyers, let him come back in two days.

"What to know two days later, the doors were shut marketing center, I did not even purchase contract, the defenders do not know how." Mr. Tang said he suspected fraud developers, why pay money to an end, it is bad the system, not the formalities purchase it?

Reporter According to the company's registered office in Kowloon, came to the 21st floor Fuchu soaring Golden Road, Changsha, Hunan, according to the office staff of the property company, said the company moved out in May.

The door on the marketing center in Kowloon · Link REIT's official close to the two notices, one of which was signed by the "Real Estate Development Co., Ltd., Hunan Province, Kowloon," posted notices said, "Kowloon · Link Shi sequestration projects closed due to an internal reorganization Specific business hours notice. " Inscribed in time for the June 21, 2014.

Project payment arrears ten million sales slump

Kowloon · Link REIT III's official sales agent for the Central Plains real estate company in Hunan, real estate, general manager of Zhongyuan Hu governance steel in the "Daily Economic News" reporter said that they withdraw marketing center, mainly due to the construction side will often go to debt collection seriously affected their normal sales, job does not work out, then leave the scene.

HU Zhi Gang said they agency official sales Kowloon · Link REIT III, the current total of more than 270 sets of products, sold only during the more than 50 sets, only about 20%. "This volume is far from ideal, under normal circumstances, to reach 50% of sales, in order to ensure the return of funds."

Clearly, sluggish sales, seriously affected the normal flow of Kowloon company funds. Evacuate the construction side, mainly because of outstanding payments construction company in Kowloon side. Hanpu Hunan Construction Engineering Co., Ltd. (hereinafter referred to as Hanpu building) an official said, Kowloon · Link REIT's official closure of shops indeed their purpose is to preserve the assets.

Construction side of Kowloon · Link Shi Hui Pu containing three buildings in addition to the building, there is a company called Hunan Lin Hui Construction Group Company Limited (hereinafter referred to as Lin Hui architecture).

Pu-containing building responsible person said they currently exist with the developer works primarily debt problems, Kowloon company owes them for projects around nine million.

"Daily Economic News" reporter learned from the Changsha Municipal Construction Committee, Changsha Municipal Construction Committee official already knew Kowloon · Link REIT developers appear rupture of funds, and to understand the details of the construction side, Kowloon company owes another building construction Fang Linhui The project funds are probably about ten million yuan.

In addition, the company not only outstanding payments Kowloon construction side, the property company owed money. Hunan Tianhuan Property Management Co., Ltd. Shi Kowloon · Link REIT real estate property, the project leader said:. "Developer still owes us more than 120 million, are now disappeared, and we are seeking legal channels to resolve"

For rumor rumors foot Kowloon company, Zhou Min, general manager of Kowloon company denied this. "We did not run away now we really had some financial problems, but now is trying to solve the problem." He said, the situation appears to evacuate the construction site construction side, as well as the withdrawal of the marketing center field, mainly due to the debt problems of these companies not been resolved.

It is generally believed that the sales slump is perhaps the funding problems arising Kowloon most fundamental reason. Zhou Min, said after the first opening from December 16 last year so far, three houses on sale, "coupled with the signing of a contract and subscription is around 80 sets."

Developers said it had asked the Government to intervene

The evening of June 29, Mr. Liu and other eight representatives of the owners and Zhou Min Kowloon company had to negotiate. Kowloon, said the company currently does not declare bankruptcy, three short of 25 million could be completed. If there is government intervention, three will be extended from 3 to 6 months submitted; Without government intervention, the time might be longer. Require all owners (especially the three owners) continued efforts to bring the government to intervene in order to be completed as soon as possible.

Kowloon company also said corporate Yang Chao, chairman of April 9 and found suffering from severe, currently in treatment, now the general manager in charge of all matters handled by Zhou Min. Zhou Min commitment will be responsible in the end, no escape.

In order to protect their own interests, to the owners of Mr. Liu, who has lived in Changsha City Construction Committee, the project site Xiangjiang New Area Administrative Committee reflect the situation.

Changsha Municipal Construction Committee Development Department, told reporters that a responsible person, Kowloon · Link Shi Hui Xiang River District project, and if they need to meet the Xiangjiang River District, they will intervene in the matter. "The thing we know, we have to find the building side to understand the situation, or to deal specifically with the Xiangjiang New Area Administrative Committee."

Owners Liu et al, then they hand the petition letter Changsha City Bureau, found Yuelu district government, the local government hopes to help them safeguard their legitimate interests.

Kowloon company also said that they are currently active liaison and coordination with the government. "We want to be able to better deal with it, also recently drafted a report to the government, to see how to better use can be a way to deal with."

"Daily Economic News" reporter called Zhou Min, he seems this does not hold out much hope, "No one will help me, and ultimately rely on our own."

Changsha stock over ten million square meters of commercial housing

According to the owners of the developers who participated in the symposium presentation, Kowloon companies with fracture of funds, has its headquarters in Zhejiang related. "I have heard there is a problem headquarters, Changsha company accounts have been frozen." However, this statement has not been confirmed by the company in Kowloon.

Hu governance Steel believes that the company's capital chain Kowloon there is a problem, and now the market is about competition. Changsha property market is currently "in rising land prices, house prices do not sell it," the status quo, the developer of pressure. "In particular, some small and medium developers, due to their own lack of funds, it is prone to problems."

He also said that some developers money fracture occurs, the moment is not unrelated to the real estate sector with banks tightening bank financing costs are relatively low, the road was blocked, the developer was forced to financing from private sources, increase the company's financing costs. "Banks to tighten lending, but also caused a narrowing range of buyers, developers selling encountered a problem."

2014, financial institutions lending in the property market slowed down significantly. In one hand, the financial impact of the Internet, a large outflow of deposits from the bank; On the other hand, the attitude of the government tightened credit policies adopted for layer remains unchanged.

In the first five months, new deposits of financial institutions in Hunan 220.01 billion yuan, an increase of 10.14 billion yuan less, which in May added 26.21 billion yuan, an increase of 16.23 billion yuan less.

Contraction of bank credit policies, not only to developers tremendous financial pressure, but also a portion of the demand for home loans who have turned away, look at the property market in Changsha, the majority of real estate are facing greater pressure. According to Hu Gang rule, Changsha currently in the sale of real estate up to more than 360, housing inventory reached 11.32 million square meters, more than 10 million units.

"According to the first half of this year sales pace, the need to digest inventory of 17 months, which exceeds the alert level." Hu said steel rule.

No comments:

Post a Comment