United Overseas Bank (UOB) is in discussions with private credit investors to sell a $1.3bn loan tied to Shimao Group Holdings’ Beacon Peak luxury apartment project in Kowloon Tong, Hong Kong.
The loan, issued in 2022, is due by September 2025 and is integral to Shimao’s ongoing debt restructuring efforts.
The troubled Chinese developer has listed 13 Beacon Peak units for sale to generate cash, selling three units at prices ranging from HKD28m to HKD37m ($3.6m to $4.8m). However, these sales fall far short of covering the loan principal, underscoring the challenges posed by Hong Kong’s weak property market.
Private credit investors’ potential involvement could complicate Shimao’s restructuring process, as such investors often prioritise asset recovery in cases of default. Beacon Peak remains a critical asset for creditor repayment plans.
Proceeds from unit sales will be used to repay the loan’s principal, interest, and associated costs. Neither UOB nor Shimao has commented on the matter.
This development reflects broader trends in distressed real estate and the growing role of private credit in resolving complex financial situations in Asia’s property markets.
Source: Private Equity Wire
Can’t stop reading? Read more
GTCR eyes $1bn valuation in Cedar Gate Technologies sale process
GTCR eyes $1bn valuation in Cedar Gate Technologies sale process GTCR has kicked off the sale of...
Silver Lake and P2 Capital weigh $5bn+ sale or IPO of Blackhawk Network amid payments sector M&A surge
Silver Lake and P2 Capital weigh $5bn+ sale or IPO of Blackhawk Network amid payments sector...
Apollo exits OLB with €1.7bn sale to Crédit Mutuel, achieving rare success in German banking sector
Apollo exits OLB with €1.7bn sale to Crédit Mutuel, achieving rare success in German banking...