China Real Estate Developer Huaxia Happiness has strengthened the efforts to raise funds for debt reorganization, and will transfer some of the key commercial real estate assets to a large state -owned developer in China.
Bloomberg reported that according to the announcement issued on the Shanghai Stock Exchange on Wednesday (December 28) in the evening, the three subsidiaries of Huaxia Happiness have signed an agreement with China Resources Land to transfer four subordinates of real estate development and property managementThe company's equity and its claims to the above company have a total transfer price of 12.4 billion yuan (the same, about S $ 2.4 billion).The transaction return funds will be mainly used to pay financial debt.
According to the data compiled by Bloomberg, Huaxia Happiness's stock price rose 6%in the early morning on Thursday (29th), the largest increase in about a month.
During the launch of Beijing to curb the rapid debt expansion of the real estate industry, Huaxia Happiness became China's first default developer last year.This private housing company is also one of the first domestic debt in the industry that announced 219.2 billion yuan in domestic debt and nearly $ 5 billion (approximately S $ 6.74 billion) of the detailed reorganization plan for overseas bonds.
"For the stocks and bond investors of Huaxia Happiness, any asset disposal is better than no progress, which indicates that the company is willing to sacrifice for survival.""This brings the hope of reorganization."
The latest transactions will allow China Resources Land to obtain commercial real estate projects in Wuhan and Nanjing.According to sales, China Resources Land is the sixth largest developer in China.
Huaxia Happiness U.S. dollar bond holders will perform a restructuring plan in January.The company's main business includes industrial park operations and commercial real estate development.
