Sunac China’s unit will sell a 51% stake in Shenzhen Ronghua Land Investment to Zhuhai Huafa for RMB 3.6bn ($520mn). Proceeds will be used to repay loan obtained for financing acquisition of a project in Shenzhen. Sunac is among the several Chinese distressed property developers after having defaulted in May 2022. The company has been trying to sell some of its assets to address its finances. Last month it sold a 64.7% stake in its Oceanwide Construction Holdings unit to a unit of China Huarong Asset Management for RMB 5.82bn ($826mn). It also sold 25% of the unit to Citic Trust for RMB 2.25bn ($320mn).
Sunac’s dollar bonds were trading higher by 0.5 points at ~22 cents on the dollar.