Chinese property developer Country Garden is selling its £450 million East London project amid asset disposals following a default on its USD 570 million offshore debt. Knight Frank, appointed by Country Garden’s UK subsidiary Risland, is marketing the 1,000-home Calico Wharf development. With planning approval, the project includes a 23-story tower and commercial space. Country Garden aims to raise USD 530 million from property sales in Guangzhou and has agreed to sell its stake in its last Australian venture. The company’s offshore debt restructuring follows an USD 11 billion default. Market attention has intensified on Chinese developers after China Evergrande Group faced liquidation over failed restructuring talks.
Country Garden, a Chinese real estate company, has listed its £450 million (USD 570 million) residential project in East London for sale as part of its strategy to sell assets domestically and internationally following its failure to meet its overseas debt obligations.
Knight Frank, a real estate agent, announced its appointment by Risland UK, a subsidiary of Country Garden, for this task. Knight Frank is tasked to promote the 1,000-home Calico Wharf project in the Poplar district of the city, where construction has not yet begun.
Country Garden, China’s leading private real estate developer, is one of several developers affected by a Chinese property market downturn that started in mid-2021 following government efforts to control high levels of debt.
The company is currently engaged in restructuring its offshore debt following a default on USD 11 billion worth of offshore bonds in October. Additionally, it has postponed repayments for its domestic bonds. The market is closely monitoring its restructuring efforts, especially in light of China Evergrande Group, the world’s most indebted real estate developer, being instructed by a Hong Kong court to liquidate this week after its negotiations with creditors for restructuring proved unsuccessful.
According to Knight Frank’s statement, the UK development has received planning consent for multiple buildings, including a tower reaching up to 23 stories, and is set to feature both commercial premises and residential units.
Furthermore, Country Garden has listed properties in Guangzhou, China, for sale with the intention of generating 3.8 billion yuan (USD 530 million) and has reached an agreement to divest its interest in its final project in Australia.
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