Latest news with #ParkviewGroup
Business Times
16-05-2025
- Business
- Business Times
Distressed Hong Kong builder Parkview gets private loan from PAG
[HONG KONG] Hong Kong's Parkview Group has obtained a HK$300 million (S$50 million) private credit loan from investment firm PAG, according to a source familiar with the matter, as banks grow reluctant to extend funds to the cash-strapped developer. The bridge loan carries a nine-month tenor and offers a yield in the low-to-mid-teens, sources familiar with the matter said, asking not to be identified discussing private matters. PAG's funding could be a relief for the company as it struggles to refinance its existing bank borrowings, they said. Several existing lenders of Parkview, including Nanyang Commercial Bank and other Hong Kong and mainland Chinese banks, have been looking to reduce their exposure to the developer, the sources added. Since late last year, the company has been in talks for private credit funding of at least HK$2.8 billion, offering two residential towers, parking spaces at one of its developments and others as collateral. But it's unclear if any of the mentioned assets, which include the apartment complex Hong Kong Parkview, were offered as security in PAG's loan. PAG declined to comment, while Parkview did not respond to a request to comment. The deal highlights the broader troubles facing Hong Kong's property market. The city has been grappling with a sluggish economy and a shift in demographics that have weighed on home prices, which declined by about 28 per cent from their peak in 2021, according to data from Centaline Property Agency. But Parkview's challenges extend beyond Hong Kong. In March, the company avoided a technical default on a US$940 million loan backed by a Beijing shopping mall complex. It is still in talks with banks to refinance the borrowing, which is set to mature in August, according to other sources familiar with the matter. BLOOMBERG
South China Morning Post
13-04-2025
- Business
- South China Morning Post
Luxury malls in Beijing, Shanghai slash rents, change tenant mix as consumer spending dips
A slowdown in Chinese consumer spending on luxury goods is affecting high-end malls in Beijing and Shanghai, with shopping centres like Parkview Green and K11 slashing rents and courting mid-market retailers to attract middle-class shoppers and stem rising vacancy rates. Advertisement Shanghai K11, an 11-year-old luxury mall owned by the family of Hong Kong billionaire Henry Cheng Kar-shun, was easing its tenant criteria as rental income continued to fall, a source told the Post, declining to provide details on rents. In Beijing, Parkview Green, a landmark shopping complex in the central business district known for its pyramid-like structure and extensive art collection, announced in March that it planned to attract more diverse restaurant operators to 'reignite its commercial potential' following the exit of high-end brands like Rolex and Ermanno Scervino. Hong Kong's Parkview Group, the property's owner, put it up for sale last December as it struggled with high mortgage payments and lacklustre occupancy rates, according to a Bloomberg report. Parkview Group, the owner of Parkview Green in Beijing, put the shopping centre for sale in December. Photo: Simon Song 'What Parkview Green represents is a type of property that was once positioned as premium, but with the challenges facing high-end consumption in China today, its brand structure and tenant mix need to be adjusted,' said Tin Sun, northern China head of research at CBRE.
