Evergrande isn’t only Chinese developer in deep debt

Property Fantasia Holdings missed $206M bond payment, intensifying concerns over property market

National Weekend Edition /
Oct.October 10, 2021 09:00 AM
Fantasia Chairman Pan Jun (Getty)
Fantasia Chairman Pan Jun (Getty)

China Evergrande Group isn’t the only Chinese developer with mounting debt problems.
Fantasia Holdings Group missed a $205.7 million bond payment, according to Bloomberg.

A unit of the company also missed a payment on a separate $108 million loan due last week. That’s according to Country Garden Services, which last month agreed to buy the assets of a Fantasia subsidiary’s property management business.

The missed payment wasn’t entirely a surprise to the market. Last month, Fantasia was among the worst performers in Bloomberg China’s high-yield dollar bond index. Around the same time, private banking units of Citigroup and Credit Suisse Group stopped accepting Fantasia notes as collateral.

Evergrande’s debt woes have brought scrutiny on other heavily indebted China-based developers. Instability in the sector has also affected larger global firms.

Since late last year, the Chinese government has sought to reel in the property sector with restrictions on debt, fundraising and even mortgage lending.

Last month, Blackstone Group pulled out of a $3 billion acquisition of Soho China, citing a “lack of sufficient progress” in securing government approval for the deal.

Fantasia is much smaller than Evergrande, with $12.9 billion in liabilities as of June 30 compared to Evergrande’s $304.5 billion, so missed payments won’t have as wide an impact on the market.

But offshore bonds make up a larger chunk of its debt. More than a third of Fantasia’s debt — $4.7 billion — is in outstanding offshore bonds. Evergrande’s $27.6 billion in offshore bonds is less than 10 percent of its liabilities.

[Bloomberg] — Dennis Lynch 





    Related Articles

    arrow_forward_ios
    Pasadena Mayor Victor Gordo with the 710 stub (City of Pasadena, Google Maps)
    Returned 710 Freeway parcel in Pasadena apt for development
    Returned 710 Freeway parcel in Pasadena apt for development
    Prologis' Hamid Moghadam and 8819 E Edison Ave in Ontario (Google Maps, Prologis)
    Prologis gets option on 177 more acres in Ontario Ranch
    Prologis gets option on 177 more acres in Ontario Ranch
    Assembly Majority Leader Eloise Gómez Reyes (47th Assembly District, iStock)
    Inland Empire industrial developers dodge a bullet — for now
    Inland Empire industrial developers dodge a bullet — for now
    Darrin Olson of Realm and Northgate Gonzalez CEO Miguel Gonzalez Reynoso with renderings of Magnolia Flats (RealmRE.com, Northgate Market, iStock)
    Northgate Gonzalez fights ‘workforce housing’ project
    Northgate Gonzalez fights ‘workforce housing’ project
    Shaheen Sadeghi with  RTHM Long Beach (Shaheen Sadeghi, Brandywine Homes)
    Retail visionary Shaheen Sadeghi sees resi in his future
    Retail visionary Shaheen Sadeghi sees resi in his future
    No asking price, numerous offers as Rancho Palos Verdes campus hits market
    No asking price, numerous offers as Rancho Palos Verdes campus hits market
    No asking price, numerous offers as Rancho Palos Verdes campus hits market
    Rendering of 2641 West Olympic Boulevard (CORbel Architects)
    K-town developer envisions new hotel on Olympic
    K-town developer envisions new hotel on Olympic
    Developer Ilan Kenig and a rendering of 702 North Crescent (Nest Seekers Int'l, FMB Development, iStock)
    Spec developer eyes $35M manse in place of Beverly Hills teardown
    Spec developer eyes $35M manse in place of Beverly Hills teardown
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...