Latest news with #SunacChina
South China Morning Post
25-05-2025
- Business
- South China Morning Post
Hot Shanghai property market defies national slump as luxury units sell quickly
Shanghai's high-end property market continues to buck the national downturn, with deep-pocketed buyers pouring capital into top-tier homes that are seen as value-preserving assets despite economic uncertainty, analysts said. Buyers snapped up all 64 units offered at One Central Park, a luxury development in the city's core Huangpu district, on Wednesday, spending 4 billion yuan (US$556 million). Developed by Sunac China Holdings, Citic Group and Xinhu Group, the project is located in the city's Xintiandi shopping and entertainment area. The flats in the sale were priced at an average of 185,000 yuan per square metre (10.8 sq ft). The largest duplex sold for more than 246,000 yuan per square metre, making it one of the most expensive residences sold in the city this year in per-metre terms. The two earlier rounds at One Central Park also sold out within hours, and the project's year-to-date sales have exceeded 10.8 billion yuan, making it the first residential project in China to surpass 10 billion yuan in 2025. The sale on Wednesday, which included flats between 300 and 1,000 square metres, was nearly triple-subscribed during the registration period, triggering a points-based allocation system designed to curb speculative buying – the first such case in central Shanghai this year. The developer said it planned to launch the fourth phase of the project, focused on high-floor units, in June at the earliest. Luxury home sales have shown sustained strength across the city. New home prices in Shanghai rose in April and May, outpacing national averages, according to Centaline Property. Last week, new-home sales in Shanghai rose 72 per cent from the previous week, while average prices surged 49 per cent to a record 107,746 yuan per square metre, Centaline data showed. Buoying the figures, premium projects including Swire Properties' Lujiazui Taikoo Yuan Residences and Greentown China's Symphony Shanghai all sold out quickly on their launch days, Centaline said.
Reuters
23-04-2025
- Business
- Reuters
China property tycoons become creditors' labourers
HONG KONG, April 23 (Reuters Breakingviews) - Chinese developers are taking their restructuring efforts to the next level by preparing to cede de-facto control to their creditors. It signals a fresh chapter for the property market in the world's second-largest economy. Take Sunac China ( opens new tab. The company is in talks to restructure its offshore debt for a second time. Two years ago it was the first among its peers to win approval to rejig its $9 billion offshore borrowings. At the time, it was agreed 30% of its dues would be exchanged for bonds that convert into equity, and the rest into new notes maturing in two to nine years. Yet the real estate slump dragged on longer than expected and now the Tianjin-based developer is seeking a deal that would convert all of its dollar debt into shares, Bloomberg reported, opens new tab on Tuesday, citing unnamed sources. That would significantly dilute Chair Sun Hongbin's 26% stake given Sunac's diminished HK$16.5 billion ($2.1 billion) market value. That puts the developer on a similar path to Kaisa ( opens new tab, which said earlier this month that it has obtained approval to swap $13 billion of debt into new notes and mandatory convertible bonds. The latter carry an average conversion price of HK$4.17, some 23 times the current share price. Bondholders could end up owning 58% of the company. In reality, creditors probably don't want the responsibility of running a Chinese developer. The high conversion price also points to a principal haircut down the line, given it's unlikely that the developer's shares will rebound so far so quickly. But the lenders do not have many alternative options. Kaisa has warned that offshore creditors might recover less than 2% of their unsecured holdings during a liquidation. And precedents on that front are not encouraging: there has been little progress since China Evergrande's ( opens new tab liquidation was ordered by a Hong Kong court more than a year ago. Large debt-to-equity swaps can help clean up Sunac and Kaisa. The current owners will hope that Beijing's expected economic stimulus shores up home prices and sales so the companies can repay their offshore debt before the notes they issue mature. Otherwise, China will have a new crop of reluctant property magnates. CONTEXT Kaisa Group announced on April 8 that a Hong Kong court approved its plan to restructure up to $13 billion of offshore debt. Under the terms of the plan, the Shenzhen-based builder will swap the debt into new notes and up to $6.9 billion of mandatory convertible bonds. The convertibles will have an average conversion price of HK$4.17, or 23 times Kaisa's share price as of April 17. Sunac China, a Tianjin-based developer seeking a second restructuring of its $9 billion offshore debt, is discussing a plan with major creditors to convert all their holdings into shares, Bloomberg reported on April 15, citing people familiar with the matter.
South China Morning Post
17-03-2025
- Business
- South China Morning Post
Sunac China warns of US$3.6 billion loss as housing slump hurts sales, assets
Property developer Sunac China warned investors that losses in 2024 could triple, a year after reorganising its defaulted debt with creditors, as a housing market slump continued to hurt home sales and erode the value of its assets. Advertisement Net loss could widen to about 25.5 billion yuan to 26 billion yuan (US$3.6 billion) for the year ended December 31, according to a Hong Kong stock exchange filing on Monday. The company reported a 7.97 billion yuan loss in 2023, which was mitigated by a 31.5 billion yuan gain from its offshore debt restructuring. Tianjin-based Sunac said its onshore debt restructuring, which helped trim its debt by 15.4 billion yuan, was expected to generate a smaller gain in 2024. It did not provide a figure. Sunac plans to publish its 2024 results on March 28, according to its filing. 'The company recording a loss for [2024] was mainly due to the significant reduction in the recognised revenue as a result of the market downturn,' it said in the filing. There were also provisions for impairment on assets and contingent liabilities at the same time, it added. China's housing market is struggling to overcome a four-year slump, first triggered by Beijing's 'three red lines' policy to curb excessive leverage among the nation's weakest borrowers and later compounded by the Covid-19 pandemic. Prices of new homes fell for the 21st straight month in February, the statistics bureau said on Monday. Advertisement
Yahoo
17-03-2025
- Business
- Yahoo
Property developer Sunac China warns of wider loss for 2024
(Reuters) -Property developer Sunac China said on Monday it expects to report a wider loss for the year ended December 2024. Beijing-based Sunac, once among China's largest real estate developers, attributed the higher net loss forecast to the absence of gains that it had logged last year after the completion of its offshore debt restructuring. In late 2023, Sunac completed a comprehensive overhaul of its $9 billion offshore debt, exchanging its existing debt for a combination of notes, among others. The company has borne the brunt of a struggling property sector in the world's second-largest economy, which has led to decreased real-estate project deliveries, and as a result, lower earnings for developers, while they battle to revive their businesses. Over the last three years, several top property developers such as Country Garden and China Evergrande have defaulted on debt repayment obligations, triggering a destabilising crisis in the economically-crucial property sector and forcing Beijing to announce support measures. In January this year, a liquidation petition was filed against Sunac with the hearing scheduled for March 19, but soon after, the company emerged as the first embattled Chinese property developer to successfully cut down its onshore debt. Sunac expects to post a loss attributable between 25.5 billion yuan ($3.52 billion) and 26 billion yuan for 2024, compared with last year's 7.97 billion yuan. The company expects to publish its fiscal 2024 results on March 28, it said. Shares of Sunac China ended flat at HK$1.88 on Monday. The stock has lost about 19% this year. Last week, Country Garden Services, the property services arm of Country Garden forecast a higher full-year profit, due to lower impairment charges. ($1 = 7.2357 Chinese yuan renminbi) Sign in to access your portfolio
Reuters
17-03-2025
- Business
- Reuters
Sunac China expects 2024 loss to widen to $3.5 billion
March 17 (Reuters) - Property developer Sunac China ( opens new tab said on Monday it expects to report a wider loss for the year ended December 2024, citing lower revenue. Beijing-based Sunac said it expects to post a loss attributable between 25.5 billion yuan ($3.52 billion) and 26 billion yuan for 2024, compared with last year's 7.97 billion yuan. ($1 = 7.2357 Chinese yuan renminbi)
