China’s Property Developers Struggle to Find Buyers for Billions in Assets
- Builders can no longer rely on asset sales to resolve crises
- Prospective buyers are hoarding cash as property markets slump
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Property developers in China looking to raise badly needed cash by selling assets are finding it hard to strike deals as potential buyers in the sector hoard funds after home sales plunged and Beijing stepped up its borrowing crackdown.
China Evergrande Group last month ended discussions to sell a controlling stake in its property-management business that would have raised about $2.6 billion. A plan to unload a trophy office tower in Hong Kong also stumbled, while Modern Land China Co. defaulted on a $250 million bond last week after it was unable to sell some assets, Cailian reported. Oceanwide Holdings Co. is seeking to offload its main office complex in Beijing after a unit defaulted.