Successively disposed of the three major cultural tourism projects in Wuhan and Kunming, and Sunac repaid 4.25 billion yuan in debt on schedule

(Text/Zhang Zhifeng Editor/Yo-Yo Ma) With the successful issuance of several M&A bonds in recent days, a wave of state-owned high-quality projects for mergers and acquisitions of insurance housing enterprises is surging forward.

Due to the small amount of money and more goods, many high-quality projects of private housing enterprises have "broken bones" and are jokingly called "picking fish" in the industry.

In fact, it is not only the insurance housing enterprises that are eager to sell assets, in this liquidity crisis that makes the entire industry deeply involved, the vast majority of private housing enterprises need to "sell" to live more or less.

Sunac is one of them.

Continue to return blood 30 billion

On January 20, the Observer Network learned that Sunac has recently repaid two debts totaling about 4.25 billion yuan, including a domestic saleable private debt of 3.315 billion yuan and a domestic ABS of 936 million yuan.

Among them, the former, Guotai Junan as the trustee of the Sunac Real Estate Group Co., Ltd. 2016 non-public issuance of corporate bonds (phase I), with a maturity of 5+1+1 years, will be redeemed on January 24, 2022 for the principal of the resale part, Sunac has transferred the principal and interest of the resale part of the total amount of 3.315 billion yuan to the designated account on January 19.

The latter is a shenwan hongyuan-Sunac Group accounts receivable asset-backed special plan with Shenwan Hongyuan as the manager, with a term of one year, which will be due and redeemed on February 9, 2022, and Sunac has fully transferred the priority principal, income and related expenses of 936 million yuan on January 20.

According to people familiar with the matter, after the redemption, Sunac has no open market debt maturity in the first quarter of this year.

As soon as the news came out, Sunac's stock price rose 15.2% on the same day to close at HK$10.9.

It should be pointed out that in terms of industry-wide sales in 2021, Sunac's performance has been called excellent.

According to the data, Sunac's cumulative sales in 2021 will be 597.6 billion yuan, ranking third in the industry, an increase of 4% year-on-year; although it failed to complete the 640 billion yuan target set at the beginning of the year, it is the only real estate enterprise in the Top3 to maintain positive growth.

Country Garden and Vanke, which ranked in the top two in terms of sales, fell by 4% and 12% respectively year-on-year, respectively, to achieve 95% and 79% of the target at the beginning of the year, respectively.

From the perspective of the whole industry, only 7 housing enterprises that successfully completed the annual sales target in 2021 are Greentown, Binjiang, Gemdale, Yuexiu, China Resources, etc., and 20% of all the housing enterprises that have released sales targets, and the remaining 80% of the housing enterprises have lost their contracts. The cumulative sales of Top100 housing enterprises also decreased by 3.5% year-on-year compared with 2020, which was the first decline since 2011.

The downward market superimposed pre-sale fund supervision, financing tightening and other factors, the cash flow of housing enterprises is mostly facing a crisis, and they have to show their magic and begin to "slim down".

As far as Sunac is concerned, according to incomplete statistics, since October 2021, Sunac has continued to recover blood through equity placement, major shareholder borrowing, asset disposal and other channels, and has withdrawn a total of about 30 billion yuan of funds.

Three complexes for sale

It is worth noting that from the current progress of Sunac's disposal of assets, the priority on the shelves is precisely the Sunac Cultural tourism complex that has been most optimistic about the company before, Sun Hongbin has repeatedly personally stood on the platform, and once had rumors of spin-off and listing, and the takeover parties are Wuhan Urban Construction, Capital Land and Huafa 3 state-owned enterprises.

According to the data of Tianyancha, from January 17 to 18, sunac's Ganlushan Cultural and Creative City project in Wuhan and the equity of the Yijiangyuan project changed one after another.

Among them, Ganlushan Cultural and Creative City is jointly built by Sunac and Wuhan Urban Construction under the Wuhan State-owned Assets Supervision and Administration Commission, after which both sides held 50% of the shares, and the project was positioned as a world-class one-stop cultural tourism complex, with a planned land area of 11,000 mu and a total investment of 70 billion yuan, which will be the world's largest ice and snow entertainment integrated single body, the world's largest water-themed comprehensive entertainment resort, and the largest theme cultural tourism project in the central and western regions after completion.

According to the industrial and commercial registration information, on January 17, Sunac transferred 35% of its equity to Wuhan Urban Construction, and after the change, Sunac only retained 15% of the equity, and Wuhan City was built as the actual controller of the project.

According to people familiar with the matter, the price of Sunac's equity transfer was 4.1% discount compared with the appraisal price.

The next day, Sunac's other major project in Wuhan, Jiangyuan, also underwent an equity change, and the major shareholder was changed from Sunac to Beijing's veteran state-owned real estate enterprise Capital Property.

Public information shows that the project plot is the "land king" project in Wuhan Qiaokou District, which was won by Sunac for 7 billion yuan in 2019. It intends to become a large-scale urban complex in Wuhan, covering an area of about 138,600 square meters, and the nature of the land includes residential, primary school, commercial, commercial, social parking, green space, cultural facilities, cultural relics and monuments, park green space, etc.

In addition, recently Sunac has reported the news that it has sold the equity of the Kunming Cultural Tourism City project, and the receiver Huafa is also a local state-owned housing enterprise.

According to Tianyan, as early as December 31, 2021, the ownership of the equity of Kunming Huachuang Cloud Real Estate Development Co., Ltd. (hereinafter referred to as "Huachuang Cloud"), a project development company for the second phase of Kunming Sunac Cultural Tourism City, was quietly changed.

Prior to this, the project was named and operated by Sunac, and the company and Zhuhai state-owned housing enterprise Huafa and Kunming state-owned housing enterprise Yun'an held 40%, 40% and 20% respectively, and the legal representative was Wang Zhigang of Sunac.

This time, Sunac sold 40% of its equity to Huafa at a price of 1.2 billion yuan, and the latter's shareholding ratio increased to 80%, Yun'an's shareholding ratio remained unchanged, and the legal representative became Wang Hong of Huafa.

According to informed sources, the consideration of Sunac's transfer of equity in the project is actually 1.4 billion yuan, in addition to the cash consideration of 1.2 billion yuan, it also includes a debt of 200 million yuan; after the equity change, sunac does not have any equity, but according to the contract, the project products, services and supporting facilities are still operated by Sunac.

Some insiders told the Observer Network that in the context of the general cash flow of the industry today, housing enterprises generally adopt the strategy of shrinking the defense line and focusing on the main business for the winter. Sunac Cultural Tourism project originally came from Wanda, although the expansion speed in recent years is very fast, but compared with the main business of residential development is still small. Therefore, it is also expected that the company will survive with a broken arm.

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