Chinese builder Hopson gets short-term loan from Temasek unit

Chinese builder Hopson Development (0754) has obtained a new private loan of around US$100 million (HK$780 million) to refinance a facility that backed the purchase of some property in Hong Kong, according to people familiar with the matter.

Seatown Holdings, a subsidiary of Singaporean sovereign fund Temasek Holdings, provided the one-year loan to Hopson, said the people, who asked not be identified discussing private matters. The facility is set to mature around the end of November or early December, the people added.

Hopson’s new loan refinances the outstanding amount of a US$165 million facility from 2023, which funded its purchase of two floors and four parking lot spaces at The Center, an office building located in Hong Kong’s central business district. Part of that borrowing had been paid down, while the remaining portion of around US$100 million to US$115 million had been extended, but matured in September.

Seatown declined to comment, saying that it doesn’t speak on specific transactions or speculation, while Hopson didn’t respond to a request for comment.

Hopson, like other Chinese developers, has faced declining sales as the country remains embroiled in its years-long property crisis. The firm recorded contracted property sales of about 15.9 billion yuan (HK$17 billion) for the year ending Dec. 31, 2024, less than the around 31.4 billion yuan the prior year, according to a company filing.

Despite Beijing’s stimulus measures last year, the nation continues to struggle to revive the property market amid weak domestic demand and a worsening job situation. While the sector has picked up modestly, improvements have mostly been in the second-hand space as buyers remain concerned about developers’ ability to finish projects on time.

Hopson, whose projects include high-end residential and commercial properties in Beijing and Guangzhou, had total assets of HK$287.5 billion as of June 30 2024, according to its interim report.

Fitch Ratings in October affirmed the builder’s B rating, with a stable outlook, saying the firm “faces manageable refinancing risk,” and that its current liquidity should be “sufficient to meet near-term debt repayments.”

BLOOMBERG