China's Kaisa plans to sell property management unit, Hong Kong sites - sources

Kaisa Prosperity Holdings

29/10/2021 07:11

By Clare Jim and Kane Wu
    HONG KONG, Oct 29 (Reuters) - Kaisa Group Holdings Ltd
 1638.HK  is seeking buyers for its Hong Kong-listed property
management unit and two residential sites in the city, people
with knowledge of the matter said, as it scrambles to meet a
wall of debt repayments.
    Kaisa plans to sell its entire 67.18% stake in Kaisa
Prosperity Holdings Ltd  2168.HK , a company with a market value
of around HK$2.4 billion ($310 million), two sources said.
    No clear buyers have emerged, one source said.
    The Shenzhen-based developer is also putting up for sale two
residential project sites in Hong Kong it acquired last year,
according to another source and sale presentation documents seen
by Reuters.
    Kaisa bought the land in Tuen Mun for HK$3.5 billion, and it
said in its interim report published in September that it owns a
50% interest in a Kai Tak site worth HK$7 billion.
    Kaisa did not comment on the plans to divest its stake in
the property management unit and did not immediately respond to
a query about the residential site sales.
    The sources asked to be named as the company's divestment
plans were not public.
    Kaisa has the most offshore debt coming due over the next
one year of any Chinese developer, after embattled China
Evergrande Group  3333.HK , which - with more than $300 billion
in liabilities - is at the centre of a stifling liquidity crisis
in China's $5 trillion property sector.
    
    ($1 = 7.7770 Hong Kong dollars)

 (Reporting by Clare Jim and Kane Wu; Editing by Sumeet
Chatterjee and William Mallard)
 ((clare.jim@thomsonreuters.com; +852 2912 6653; Reuters
Messaging: clare.jim.thomsonreuters.com@reuters.net))