Since the liquidity crisis broke out in early November, Kaisa has been actively solving problems, giving the impression that it is "not lying flat".
With the release of the financial management payment plan two days ago, repayment measures have been implemented for financial products with a principal amount of about 1.097 billion yuan. In addition, progress has been made in debt rollover and asset sales.
The speed and progress of asset disposal will determine the next fate of the company, Guo Yingcheng dare not snub.
Earlier this month, Kaisa made a list of its high-quality assets to the public. Including residential, plaza, shopping streets, hotels and other forms of 18 assets for sale, the total equity value of 81.825 billion yuan, corresponding to bank financing of 20.383 billion yuan.
According to the latest market information, Kaisa originally planned to sell 18 projects have been expanded to 25, including 10 old renovation projects in Shenzhen. It is conservatively estimated that the total value will reach more than $100 billion, in addition to two recent sales of assets in Hong Kong.
At the critical moment, Cai Zhiming, the "toy king" who had saved Jia Zhaoye several times before, came to lend a helping hand as a fellow townsman of Boss Guo.
On November 17, Wall Street learned that Kaisa planned to sell the Castle Peak Bay section of Castle Peak Road in area 48 of Tuen Mun for $3.77 billion. The residential land can be built with a floor area of 582800 square feet at a land price of $6468 per square foot. This piece of land is its first son in the Hong Kong market, and this time the buyer is Cai Zhiming, chairman of Asahi International Group.
According to people close to the deal, the deal has been basically settled, but delivery has not yet been completed. If the dust finally settles, Kaisa is expected to receive a cash inflow of about HK $1.12 billion after deducting the land purchase loans at that time.
Data show that Cai Zhiming, who successfully did business in Hong Kong a long time ago, has promoted Guo Yingcheng, a Chaozhou fellow-townsman, who is now in his 50s. In addition to matchmaking and introducing Guo Yingcheng to meet Hong Kong bosses, he has also helped Kaisa industry break up many times, and the two are business partners with a deep relationship.
In addition to the above projects sold to Cai Zhiming, Kaisa also rumored to sell the Kai Tak project, which is the most profitable "cash cow" in Hong Kong housing projects. By February this year, Kaisa accounted for 56% of the total revenue from four projects in Hong Kong.
On the morning of November 25th, far East Development announced that it had entered into an acquisition agreement with New World Development to form a joint venture company, River Riches Limited, and the seller Yanyou Co., Ltd. (Chen Zhuangrong and Kaisa each hold 50 per cent of their shares). The seller will sell all shares in the project company and facilitate the transfer of related project loans at a transaction consideration of HK $7.948 billion.
Yanyou Co., Ltd. is the project company of Kai Tak Land. At the end of July 2020, Yanyou Co., Ltd. bought the land from Gaoyin Financial for HK $3.477 billion, covering an area of about 9708 square meters. it is located in a prime location in Kai Tak, a newly developed area in Hong Kong, China, and the development is under development.
If the sale is successful, minus HK $3.052 billion of outstanding loans and HK $1.232 billion of related loans for sale, Kaisa will eventually get about HK $3.66 billion.
Through the two deals in Hong Kong, Kaisa will withdraw 4.78 billion Hong Kong dollars, or about 3.912 billion yuan, which will be used to repay financial management and debts.
Guo Yingcheng is trying to fulfill the promise he made to investors at the conference call earlier this month.