Developer Country Garden Hunting for Cash to Finish Building Homes
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Debt-ridden property developer Country Garden Holdings Co. Ltd. is trying to scrape together cash to finish ongoing projects.
The company is requesting permission from local authorities to reallocate locked-up presale funds and trying to get its projects onto various financing whitelists, a source familiar with the company told Caixin.
Delivering homes on time to customers who’ve already paid for them is proving a major challenge for developers struggling with liquidity amid a prolonged market downturn. Country Garden, once China’s biggest property developer, failed to meet its annual targets of delivering 700,000 and 480,000 homes in 2023 and 2024, respectively. It delivered 380,000 homes last year, according to the developer.
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- Country Garden Holdings is attempting to reallocate presale funds and get projects onto financing whitelists to address funding issues and complete home deliveries amid a market downturn.
- It missed its annual home delivery targets, delivering 380,000 homes last year, and is focusing on completing projects to hand over homes on time.
- The company plans to restructure up to $11.6 billion in offshore debt before a Hong Kong court hearing to avoid a winding-up petition filed by a creditor.
- Country Garden Holdings Co. Ltd.
- Country Garden Holdings Co. Ltd. is a debt-plagued property developer focusing on completing projects to deliver homes on time. It is seeking local authority approval to reallocate presale funds and wants its projects included in financing whitelists. The company defaulted on a dollar debt in 2023 and aims to restructure up to $11.6 billion in offshore debt to address a winding-up petition filed by a creditor and demonstrate its ability to repay debts.
- Late 2023：
- Country Garden defaulted on a dollar debt.
- January 2024：
- The Ministry of Housing and Urban-Rural Development and the National Financial Regulatory Administration announced a whitelist policy.
- March 2024：
- Country Garden missed a coupon payment on a yuan bond for the first time.
- As of mid-March 2024：
- 272 of Country Garden's projects had been whitelisted.
- Monday, January 6, 2025：
- At an internal meeting, Chairwoman Yang Huiyan stated the focus for 2025 will be on finishing projects and repairing the balance sheet.
- Thursday, January 8, 2025：
- Country Garden announced plans to reduce its offshore debt by up to $11.6 billion.
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