Hong Kong builder Parkview seeks loan extension as talks drag on
The loan, backed by the Parkview Green complex in Beijing's Chaoyang district, is set to mature on Aug 15, the sources said, asking not to be identified discussing private matters.
Parkview has been in refinancing talks with banks for months, Bloomberg has reported. However, the company still has not secured sufficient support from banks, as worries grow over its liquidity, the sources said.
The situation is becoming urgent because if Parkview does not manage to finalise a deal or receive an extension before the loan matures, it risks a potential default, threatening the future of one of Beijing's most iconic malls. The lengthy discussions with banks underscore the continued challenges facing China's commercial real estate sector, as funding conditions tighten amid falling property values and dwindling cash flows.
To win over lenders' support, the developer had considered selling more than 300 pieces of artwork valued at over HK$200 million (US$33 million) from Parkview Green's extensive collection to help reduce outstanding debt and help secure a refinancing deal, Bloomberg reported earlier.
Parkview did not respond to emailed requests for comment, and no one was available to comment when Parkview Green's Beijing office was called.
Locally known as Fangcaodi, Parkview Green is known for its art collection, including pieces from Salvador Dali and Chinese artists such as Chen Wenling and Wang Luyan, according to its website.
Parkview has offered additional collateral, including other Beijing residential properties, as a further credit enhancement for the refinancing deal, Bloomberg News has reported. BLOOMBERG
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