Sunac China Holdings has agreed to buy some of the assets of troubled property developer Kaisa Group Holdings, in a deal worth about US$380 million.
Sunac, a real-estate group based in Tainjin, will buy equity stakes and debt in four of Kaisa’s projects in Shanghai for a total of 2.37 billion yuan, the Wall Street Journal reported, citing a regulatory filing Sunday.
With the deal, Sunac comes as a white knight to Kaisa, which had spooked the markets recently by missing coupon payment on some bonds.
Several property firms were said to have been in talks with Kaisa, which has a land bank totaling 23.6 million square meters in more than 29 Chinese cities.
Kaisa’s troubles started when authorities in Shenzhen blocked sales at some of its projects in the city late last year. Later, the company defaulted on interest payment on some offshore bonds, prompting other creditors to demand repayment and freeze some of its bank accounts.
Kaisa Group bonds have lost as much as two-thirds of their value since the troubles started, Reuters noted.
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