BENGALURU: Embattled Chinese developer Logan Group has secured a HK$8.2 billion ($1.05 billion) loan to refinance a facility that backed the development of a luxury property in Hong Kong, as the firm goes ahead with its debt restructuring.
Logan on Thursday said Unicorn Bay (Hong Kong) Investments, a firm in which it owns a 50% stake, has secured the loan.
The newly secured refinancing is a step in Logan’s path to restructure around $8 billion of its offshore debt with the firm adding that it will continue to push forward with the restructuring.
The luxury property, The Corniche, was built during China’s property boom by developers Logan Group and KWG Group and was expected to generate around HK$30.9 billion in sales.
However, a downturn in the local property market and high prices for premium locations have led to apartments in the project remaining largely empty after it was completed last year.
Prices of some units at the first tower of The Corniche had been reduced to around HK$25,000 per square foot, Bloomberg News reported earlier in the year, saying that the new price reflects a 40% discount from the original asking price.
Source Homevior.in
