Financial Associated Press, November 12th (Reporter: Li Jie) The landmark hotel in Chengdu, which was auctioned off twice, has successfully changed hands.

On November 12th, it was reported that the Intercontinental Grand Hotel in Chengdu Global Center under Sunac's name has been transferred to Beijing Oriental Yuhong in the form of debt-to-equity swap.

An informant informed reporters that the news is true, the Intercontinental Grand Hotel in Chengdu Global Center is now held by Beijing Oriental Yuhong.

Public information shows that the Intercontinental Grand Hotel in Chengdu Global Center is an asset under Global Sunac Expo Travel Group. The Global Sunac Expo Travel Group is a subsidiary of Sunac, with Sunac Southwest Group holding 51% of the shares, and the Chairman of Global Sunac Expo Travel Group Limited, Deng Hong, personally holding 23.03% of the shares.

The Intercontinental Grand Hotel in Chengdu Global Center was acquired by Sunac from Yunnan Metropolitan Real Estate Development in 2019.

According to the announcement by Sunac on November 27, 2019, it acquired 51% of the equity of Global Century and Era Global (the target company) held by Yunnan Metropolitan Real Estate Development Group for a consideration of 15.269 billion yuan. After the completion of the transaction, Global Century and Era Global became an indirect subsidiary of Sunac China and was renamed and restructured as the Global Sunac Expo Travel Group, involving 18 projects in cities such as Chengdu, Wuhan, Changsha, Kunming, including the Intercontinental Grand Hotel in Chengdu Global Center.

As Sunac faced financial difficulties, the Intercontinental Grand Hotel in Chengdu Global Center was put up for auction and faced two failed auctions.

The first auction of the project took place from January 25 to January 26, 2024. At that time, the Second Intermediate People's Court of Beijing held a public auction on the JD Judicial Auction Platform for part of the property at No. 1700 North Section of Tianfu Avenue, Hi-tech Zone, Chengdu. The building area of the auctioned property is approximately 0.115 million square meters, with a starting price of 1.15 billion yuan, discounted to 7.15% of the evaluated price of 1.609 billion yuan.

Due to no one bidding, the first auction of the property failed. Subsequently, on February 26, the project was again put up for auction with a reduced starting price of 1 billion yuan. However, despite the price reduction, there were still no takers, resulting in another failure.

Subsequently, according to the ruling on debt-for-equity swap issued by the Second Intermediate People's Court of Beijing on March 26, 2024, it was ruled that "the relevant rights to the land use right and the surface structures shall be transferred to Beijing Oriental Yuhong Waterproof Technology Co., Ltd. upon the delivery of this ruling".

It can be seen that after two failed auctions, the ownership of the Intercontinental Grand Hotel on Tianfu Avenue, Chengdu, was ultimately transferred to Oriental Yuhong in the form of debt-for-equity swap.

Public information shows that the total building area of the Intercontinental Grand Hotel on Tianfu Avenue in Chengdu is 0.105 million square meters. It is the largest five-star luxury hotel in the downtown area of Chengdu, with an annual revenue of approximately 0.19 billion yuan in the past five years. The owner's profit assessment is 50 million yuan. Currently, the hotel is still operating normally on a daily basis, with the lease term until 2041.

Of note, on November 4, the Intercontinental Grand Hotel in Chengdu was still soliciting intentions for transfer, with the bidding process managed by the Shenzhen United Property Rights Exchange.

Industry insiders believe that Oriental Yuhong may continue to transfer the asset in the future.

The acquirer of the aforementioned project, Oriental Yuhong, is known as the "waterproof leader" in the market. As early as 2020, they had already entered the real estate market and now made an appearance in the land market.

According to incomplete statistics by reporters, in August 2020, Beijing Oriental Yuhong Waterproof Technology joined hands with Agile Group to win a residential land in Zhongxin Town, Zengcheng District, Guangzhou, at a price of approximately 0.8 billion yuan, with Beijing Oriental Yuhong holding approximately 20% of the shares. In April 2021, Beijing Oriental Yuhong obtained a mixed residential and commercial land parcel in Huadu District, Guangzhou, at a price of approximately 0.112 billion yuan through its wholly-owned subsidiary Guangzhou Oriental Yuhong Real Estate. In October 2023, the company won a residential land project in Nanyuan, Fengtai District, Beijing for 4.0135 billion yuan, but sold it for 0.475 million yuan in less than a month, attracting attention from the public.

According to the financial report, Beijing Oriental Yuhong Waterproof Technology achieved revenues of 21.699 billion yuan in the first three quarters of this year, a decrease of 14.44% year-on-year; the net income attributable to shareholders of the listed company was 1.277 billion yuan, a decrease of 45.73% year-on-year.