China Resources Land (1109) has signed a 23 billion yuan (HK$28.33 billion) financing agreement with China Merchant Bank (3968) for further acquisitions as cash-strapped peers rush to offload their assets.
Under the agreement, the state-owned developer will receive a financing facility of 20 billion yuan, while its property management unit China Resources Mixc Lifestyle Services (1209) will receive 3 billion yuan
The deal came after state-owned developer China Overseas (0688) spent 3.7 billion yuan to take over the stakes of a joint venture from Shimao (0813) and Agile (3383).
This came as China Evergrande (3333) told its creditors it aims to come up with a preliminary restructuring proposal in the next six months. The embattled developer held a conference call with investors yesterday, with financial advisers including China International Capital listed on the call's invitation, Bloomberg reported.
Meanwhile, authorities have reportedly met representatives of asset management firms to solve the credit crunch issue of mainland developers, according to mainland media reports.
The asset management firms, which have extensive experience in asset disposal, are expected to speed up the process and help reduce the risk caused by the property sector, the reports said.
Last week, a representative of a unit from bad loans manager China Cinda Asset Management (1359) was named a non-executive director to Evergrande.
And Shimao has reportedly hired Deloitte as a financial adviser at the request of its syndicated loans' offshore holders, Debtwire reported.
Elsewhere, Sunac China (1918) has surrendered a plot in Hangzhou to a local developer in the latest effort to ease its liquidity crisis, having cashed out 30 billion yuan through various means in the past three months.
China Aoyuan (3883) has also cashed in 3 billion yuan after it sold a number of domestic and overseas projects in recent months.
A shopping mall operated by China Mixc Life Style Services. The property manager will receive 3 billion yuan. SING TAO
