Distressed property developer China Evergrande will work with Shenzhen Longgang Ancheng Investment Operation Co Ltd, owned by the Shenzhen government in order to complete four property development projects. The projects are situated in the tech hub of Longgang district. The company will help Evergrande with the project construction ensuring delivery of homes to buyers. China Evergrande has already promised to restart its remaining stalled property projects by end of September after having resumed work on 668 of its 706 projects.
Evergrande’s dollar bonds are trading at deeply distressed levels of 5-7 cents on the dollar.
Separately, Sunac China has sought to extend repayments on its local RMB 4bn ($558.3mn) bonds for the third time. It plans to extend the maturity on its bond by 6 months, as per Reuters sources. The bond matures on 01 April 2024, but investors had a put option to sell the bond back to the company on April 1 this year. Bondholders approval will be required for extension. Sunac had defaulted on dollar bonds in May and in June, it missed payments on its local extended bonds.
Sunac’s bonds are currently trading at distressed levels of around 14-15 cents to the dollar.