Hong Kong’s top developer seeks HK$5 billion loan after hiatus
Sun Hung Kai typically seeks syndicated loans annually and has rarely skipped raising them over the past decade
[HONG KONG] Hong Kong’s largest developer, Sun Hung Kai Properties, is seeking a loan of at least HK$5 billion (S$812.5 million), returning to the market after skipping its annual refinancing last year.
Its latest facility will carry a five-year tenor, with a potential for upsize depending on the banks’ responses, said sources.
The developer, which primarily builds and operates properties in Hong Kong and mainland China, typically seeks syndicated loans annually and has rarely skipped raising them over the past decade.
The firm did not do any refinancing in 2025, a year when slumping home sales and declining asset values made refinancing challenging across the entire sector.
Another local builder New World Development, for instance, took months to complete its record HK$88.2 billion refinancing, narrowly avoiding default.
Sun Hung Kai aims to close the deal by the end of March, sources said, asking not to be identified discussing private matters. Talks with the lenders are ongoing and the terms may still change, they added.
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A spokesperson for Sun Hung Kai declined to comment.
This comeback is another sign that Hong Kong’s housing market is recovering after years of weakness.
Mainland Chinese buyers have spent record amounts in the city, helping the developers clear inventory. Interest-rate cuts are spurring mortgage demand, while the rising rents are encouraging residents to purchase homes.
Reflecting the shift in sentiment, the Hang Seng Property Index has jumped 15 per cent in the year to date, outperforming the broader benchmark’s 4.7 per cent gain.
Meanwhile, Blackstone is in advanced talks to become New World’s largest shareholder, a deal that would inject much-needed liquidity.
Sun Hung Kai is widely regarded as one of the sector’s strongest borrowers, backed by a steady cash flow and deep banking ties. In 2024, the company secured a HK$23 billion loan from 23 banks, after the facility was oversubscribed by nearly 500 per cent. BLOOMBERG
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