Greenland, the Shanghai-based firm at risk of defaulting on its debt payments, has put one of its primary Los Angeles developments up for sale, The Real Deal has learned.
The company is shopping the 350-room Hotel Indigo in Downtown L.A., sources familiar with the matter told TRD. Greenland did not respond to repeated requests for comment.
This is at least the second time the firm has put the hotel up for sale. In 2018, Greenland was asking $280 million for the hotel, located at 899 Francisco Street, just off the 110 freeway.
The hotel, a brand of IHG Hotels & Resorts, is located at Greenland’s larger Metropolis complex, which includes two residential towers with 822 units. In 2020, the company scored a $250 million loan from Apollo Global Management and a further $160.4 million loan from Shanghai Commercial Bank on the residential portion of the complex, according to public property records filed with L.A. County.
Though it’s unclear how much Greenland is asking for the hotel portion, the sale effort comes as the developer needs more cash to pay off its bondholders. Last month, the Chinese parent company of Greenland USA was downgraded by S&P Global Ratings to CCC, after the firm asked for more time to repay $488 million in bondholder debt due at the end of June.
“We believe the company is vulnerable to nonpayment,” S&P said in its report.
Greenland is not the only one — about 60 China-based developers are facing $13 billion in looming debt payments by the end of the year. Last week, Shimao Group, one of the country’s largest developers, defaulted on a $1 billion bond last weekend.
Though Shimao doesn’t have any projects in the U.S., a number of at-risk developers in China do. Oceanwide, which most recently defaulted on a $175 million loan connected to its planned Manhattan development at 80 South Street, has lost control of all but one of its U.S. projects –– the unfinished Oceanwide Plaza just a few blocks from Hotel Indigo in Downtown L.A. –– after a number of defaults and loan extensions.