Chinese developer Country Garden is divesting a portion of its stake in the Australian residential venture as part of a strategic shift, indicating a potential withdrawal from the Australian market. The sale, conducted by its Australian subsidiary Risland, involves a partial interest in the Wilton Greens development near Sydney, covering about 330 hectares. The sale, valued at USD 157 million to Avantaus, is part of Country Garden's efforts to address its financial challenges and restructure offshore debt. The move follows a series of sales, including the Windermere residential site, highlighting the developer's focus on financial recovery and restructuring.
Chinese developer Country Garden, burdened with debt, has decided to divest a portion of its stake in an Australian residential venture. This move is part of a series of sales, indicating a strategic shift towards a complete withdrawal from the Australian market. The Australian subsidiary Risland is set to sell its partial interest in the Wilton Greens development which covers approximately 330 hectares and is situated around 65 km southwest of Sydney. The South China Morning Post disclosed that the sale was to Avantaus for USD 157 million.
CEO Guotao Hu mentioned in the statement that the divestment provides Risland with an opportunity to adjust its portfolio, enabling the pursuit of new prospects within the significant Australian market. The Wilton Greens project was started in 2019 as a USD 1.31 billion development featuring 3,600 homes on the outskirts of Sydney. But the project has encountered delays and fewer than 50 homes were under construction in October.
One of China's largest private property developers, Country Garden, is grappling with a financial squeeze following a debt crisis in mid-2021. Country Garden is engaging in sales outside China as it actively develops a proposal for restructuring its offshore debt, following a default on USD 11 billion in bonds in October. During that month, the developer concluded the sale of the Windermere residential site on the outskirts of Melbourne, marking one of its last assets in Australia.
Country Garden announced the appointment of KPMG Advisory (China) Ltd as its primary financial adviser for the offshore debt restructuring process.
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