(Nov 5): Chinese developer Kaisa Group Holdings Ltd is seeking to sell its Hong Kong headquarters office, according to people familiar with the matter, marking the defaulter’s latest effort to ease funding pressure.

Kaisa has offered to sell the 30th floor of The Center, an office tower, the people said asking not to be identified discussing a private matter. The developer is seeking more than HK$500 million (US$64.3 million or RM280.66 million) for the space, said one of the people. The builder pledged the premises to Kingston Finance Ltd in 2023 to secure a loan, land records showed. 

The planned sale is a reminder of Kaisa’s continued financing woes after it defaulted on its dollar debt in 2021 and as China’s unprecedented housing crisis approaches its fifth year. It also came after the developer said in September that it won creditor support for an offshore restructuring plan that lists the headquarters as one of four overseas assets that can be sold to raise cash.

Kaisa didn’t immediately respond to Bloomberg’s request for comment.

It’s not the first time that Kaisa has sought buyers for premises it owned in the iconic skyscraper for debt repayment. It sold the 38th floor of the building in 2021 for no more than HK$186.4 million to Shandong Hi-Speed Holdings Group to settle part of an outstanding loan from the latter. 

With about US$13 billion of offshore borrowings subject to restructuring, the developer now faces a Dec 19 hearing at a Hong Kong court to seek permission to hold a creditor vote on its debt overhaul plan. The defaulter is under pressure to make progress after a petition to dissolve its business was filed last year. A hearing on the so-called winding-up request has been further adjourned to March 31.

Uploaded by Tham Yek Lee