HK Builder Parkview Gets Loan Extension, Easing Default Risk
The loan, backed by the Parkview Green complex in Beijing's Chaoyang district, will now mature in November, the people said, asking not to be identified discussing private matters. Parkview risked a potential default had it not managed to secure the extension, as lenders would have had the option to demand immediate repayment when the facility matured.
Parkview didn't respond to a request for comment.
Parkview has been in refinancing talks with banks for months, highlighting the challenges builders still face amid a property slump that has dragged on for years. Some smaller Hong Kong developers have experienced liquidity stress as banks demand stricter refinancing terms and higher credit enhancements.
To move its refinancing talks along, Parkview even considered selling artwork valued at over HK$200 million ($25.5 million) from Parkview Green's collection in an effort to attract creditor support, Bloomberg has reported.
China's commercial real estate sector continues to face pressure. The office vacancy rate in Beijing was 16.9% in the second quarter, according to Cushman & Wakefield. While that was slightly lower than the year-earlier period, the improvement came after landlords offered lower rents for lease renewals, the real estate services firm said.
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.
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