Chinese developer Landsea misses offshore notes redemption
Mainland based mid-sized property developer Landsea Green Management said in a filing on Sunday (Apr 21) that slow sales meant it failed to redeem some US dollar notes and may have to accelerate repayments of the debt.
Landsea has joined a growing list of Chinese developers facing a lack of liquidity because of a sustained fall in the value of property in the country.
The senior notes in question were issued by Landsea in 2022 and are listed on the Singapore Exchange Securities Trading Limited with interest at 10.75 per cent per annum payable semi-annually, Sunday’s filing to the Hong Kong bourse said.
It added the notes have a principal amount worth US$96.1 million.
Landsea was scheduled to redeem at least 30 per cent of the principal amount, together with accrued and unpaid interest, on Saturday, but did not make that payment because of “the liquidity pressure currently faced by the company”, the filing said.
It said Landsea’s pre-sales volume and collection of pre-sale proceeds fell significantly in 2022 and 2023.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
It is in discussions with the holders of the 2022 notes and will monitor the situation and consider all possible actions, the filing said. REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
ExxonMobil to take 18 to 24 months to hit full stride with Pioneer purchase
Luminar to cut nearly 20% jobs as part of restructuring
TD risks an earnings hit from US laundering probe, analysts say
Everything Apple plans to show at May 7 ‘let loose’ iPad event
BNP weighing up to 150 job cuts in Geneva to slash costs
Bitcoin’s wild price swings point to the rising influence of ETF buyers