MAINLAND based mid-sized property developer Landsea Green Management said in a filing on Sunday (Apr 21) that slow sales meant it failed to redeem some US 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 cent per annum payable semi-annually, Sunday’s filing to the Hong Kong bourse said.
It added the notes have a principal amount worth US$96.1 million.
Landsea was scheduled to redeem at least 30 per cent 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.
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It is in discussions with the holders of the 2022 notes and will monitor the situation and consider all possible actions, the filing said. REUTERS
