Date
25 September 2017
A woman stands on a bridge near the construction site of Kaisa Plaza, then named Changan No. 8, in Beijing's central business district. Photo: Reuters
A woman stands on a bridge near the construction site of Kaisa Plaza, then named Changan No. 8, in Beijing's central business district. Photo: Reuters

Kaisa failed to unblock sales during talks with Shenzhen govt

Chinese property developer Kaisa Group failed to convince Shenzhen officials to unblock sales of its projects during talks on Monday.

Top executives of the troubled company held a meeting with Shenzhen officials in Longgang district in northern Shenzhen, where two of Kaisa’s new projects are blocked, Reuters reported Wednesday.

“There was no progress at all in the meeting,” a Kaisa executive was quoted as saying.

A Shenzhen official told homeowners that the government “needs some time to resolve this incident” as the Kaisa case was linked to China’s crackdown on corruption, the pro-Beijing Wen Wei Po newspaper reported Monday, citing a deputy director of a government bureau that deals with public complaints.

The Kaisa source told Reuters he was not at the meeting in person but was briefed on the discussions by those who were.

Negotiations are continuing.

A Kaisa spokeswoman said she was not aware of the talks. Shenzhen’s Urban Planning, Land and Resources Commission was not available for comment.

Kaisa is struggling after a string of senior executives left unexpectedly and authorities blocked sales at some of its projects in Shenzhen last year.

Earlier this month, the company failed to make a US$26 million interest payment on bonds due in 2020, and now has until Feb. 9 to pay that coupon or else become the first Chinese real estate firm to default on its offshore debt.

The source dismissed a report by Apple Daily newspaper on Tuesday that Shenzhen authorities would end the moratorium on unsold units at several Kaisa projects within two weeks, a prospect that has buoyed investor sentiment in the troubled firm.

“I haven’t heard anything about that,” the source said.

Kaisa’s problems have left buyers of apartments in their upcoming developments unsure as to whether they will get their flats or suffer hefty financial losses if the firm goes bust.

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