Modern Land, another Chinese real estate developer, is struggling to pay its debts and asking investors for more time to pay back $250 million bond.
Another developer has been caught up in China’s property crisis. According to a company filing with the Hong Kong Stock Exchange on Monday, Modern Land is requesting more time to repay a $250 million bond. The payment was due on the 25th of October. Modern Land wants to push back the deadline to the end of January in order to improve “liquidity and cash flow management, as well as avoid any potential payment default,” according to the company.
Chairman Zhang Lei and President Zhang Peng aim to offer around 800 million yuan ($124 million) in loans to the company, according to a separate filing. Modern Land’s stock dropped more than 2% in Hong Kong on Monday. This year, the stock has lost 45 percent of its value.
According to Refinitiv data, the announcement of the company’s financial woes occurred on the same day that China’s second-largest developer, Evergrande, faced yet another debt repayment deadline, this time for around $148 million in interest payments on US dollar-denominated bonds.
Modern Land, situated in Beijing, describes itself as the country’s “largest operator of green technology industrial homes,” with approximately 200 projects completed in over 50 locations in China and internationally.
Chinese Government Has Begun to Rein in the Real Estate Sector in Order to Prevent the Market From Overheating.
Since then, Beijing has made it plain that it wants to rein down soaring property prices, which it blames for widening wealth gaps and risking economic and social stability.
Last week, Fantasia Holdings, a Shenzhen-based company, skipped payments to lenders totaling $315 million. In a stock exchange filing at the time, the luxury apartment developer stated that it was evaluating “the potential impact on the group’s financial health and cash position.”