HK-based developer Logan Group gets over $1 bln loan amid restructuring (updated)

KWG group

15/08/2024 11:21

(Updates with further details and background)
       Aug 15 (Reuters) - Embattled Chinese developer Logan
Group  3380.HK  has secured a HK$8.2 billion ($1.05 billion)
loan to refinance a facility that backed the development of a
luxury property in Hong Kong, as the firm goes ahead with its
debt restructuring.
    Logan on Thursday said Unicorn Bay (Hong Kong) Investments,
a firm in which it owns a 50% stake, has secured the loan.
    The newly secured refinancing is a step in Logan's path to
restructure around $8 billion of its offshore debt with the firm
adding that it will continue to push forward with the
restructuring.
    The luxury property, The Corniche, was built during China's
property boom by developers Logan Group and KWG Group  1813.HK 
and was expected to generate around HK$30.9 billion in sales.
    However, a downturn in the local property market and high
prices for premium locations have led to apartments in the
project remaining largely empty after it was completed last
year.
    Prices of some units at the first tower of The Corniche had
been reduced to around HK$25,000 per square foot, Bloomberg News
reported earlier in the year, saying that the new price reflects
a 40% discount from the original asking price. 

($1 = 7.7914 Hong Kong dollars)

 (Reporting by Rishav Chatterjee in Bengaluru; Editing by Vijay
Kishore)
 ((Rishav.Chatterjee@thomsonreuters.com;))