Chinese developer Landsea misses offshore notes redemption

Landsea Green Management

21/04/2024 12:43

By Xie Yu
       HONG KONG, April 21 (Reuters) - Mainland based mid-sized
property developer Landsea Green Management  0106.HK  said in a
filing on Sunday that slow sales meant it failed to redeem some
U.S. dollar notes and may have to accelerate repayments of the
debt.
    Landsea has joined a growing list of Chinese developers
facing a lack of liquidity because of a sustained fall in the
value of property in the country.
    The senior notes in question were issued by Landsea in 2022
and are listed on the Singapore Exchange Securities Trading
Limited with interest at 10.75% per annum payable semi-annually,
Sunday's filing to the Hong Kong bourse said.
    It added the notes have a principal amount worth $96.1
million. 
    Landsea was scheduled to redeem at least 30% of the
principal amount, together with accrued and unpaid interest, on
Saturday, but did not make that payment because of "the
liquidity pressure currently faced by the company," the filing
said.
    It said Landsea's pre-sales volume and collection of
pre-sale proceeds fell significantly in 2022 and 2023. 
    It is in discussions with the holders of the 2022 notes and
will monitor the situation and consider all possible actions,
the filing said.

 (Reporting by Xie Yu; editing by Barbara Lewis)
 ((Yu.Xie@thomsonreuters.com;))