Sunac To Buy Four Kaisa Projects

Kaisa Funding Crunch Seen Easing on Sunac $380 Million Purchase
Sunac China Holdings Ltd. has agreed to buy four units of Kaisa Group Holdings Ltd. for 2.37 billion yuan ($380 million), easing a funding crunch at the troubled property developer that has missed debt payments.
Sunac will pay 1.18 billion yuan for Shanghai Qingwan, 606.6 million yuan for Shanghai Rongwan and 598.6 million for Shanghai Yingwan and Shanghai Chengwan combined, the company said in a Sunday filing with the Hong Kong stock exchange. Kaisa announced it would post a loss of 43.9 million yuan after the disposals in a separate filing with the Hong Kong exchange.

An analyst with Centaline has the optimistic take:
“It’s probably not the end of it and it’s a good move in the right direction,” Liu Yuan, a Shanghai-based research director at Centaline Group, China’s biggest property agency, said by phone. “We believe the whole event will eventually be solved by an acquisition and won’t cause major disruptions to the industry or cause chain reactions.”

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