Recently, Country Garden has "packaged" a number of assets for a "big sale."。

Country Garden intends to transfer five assets, totaling 38.1.8 billion yuan

According to the Guangzhou Equity Exchange, Country Garden has five assets to be transferred, all located in Guangzhou。The assets to be transferred include Zengcheng District Phoenix City Hotel, Zengcheng District Country Garden Center Grade A Office Building, Zengcheng District Country Garden Phoenix City Yongwang Commercial Property, Panyu District Country Garden Tibetan House Office Building, Baiyun District Renhe Apartment Building。Total proposed transfer price of five assets 38..1.8 billion yuan。

Judging from the information released by the Guangzhou Equity Exchange, this series of asset transfers by Country Garden has two features。

First, these assets are high-quality assets.。

For example, Zengcheng District Phoenix Hotel is a "conference, vacation, business" three-in-one landscape theme hotel, star for five-star, covers an area of 200,000 square meters, construction area of 7..80,000 square meters。The hotel is currently quoted at 12.600 million, the highest of the five assets mentioned above.。

The second highest offer is the office building of the Tibetan government in Biguiyuan, Panyu District, which is currently quoted at 11.5.2 billion yuan。The project is located at the intersection of South China Plate C, National Highway 105 and Nanda Main Line, and is separated from Changlong Wildlife Park all the way.。According to the disclosure, the office building consists of three buildings A, B and C, all delivered on December 30, 2023.。

In addition, there is a Grade A office building in Zengcheng District's Biguiyuan Center, located in the central axis core development area of Lihu New City, which is quoted at 7.7.2 billion, handed over in mid-2022, currently vacant。Renhe Apartment Building and Phoenix Aeon Commercial Property are quoted 3.8.4 billion yuan and 2.500 million yuan, the status quo rental。

Second, the eligibility conditions for the intended transferee of these assets are not strict.。According to the information released by the Guangzhou Equity Exchange, the qualification conditions for the intended transferee of the above five assets are legally surviving legal persons, unincorporated organizations or natural persons with full civil capacity (including individual industrial and commercial households) incorporated within and outside the People's Republic of China.。Relatively lax eligibility conditions, or the company's rush to sell。

Country Garden has sold assets many times to withdraw funds.

Since Country Garden burst into a liquidity crisis last year, the company has disposed of a number of assets。

In August 2023, as one of the only two shareholders of the Guangzhou Asian Games City project, Country Garden transferred its 26.67% stake sold to China Overseas Land for a total consideration of approximately 12.91.5 billion yuan。

In December 2023, Country Garden entered into an agreement with Wanda Commercial Management and Zhuhai Wanying, and Jinyi Global (an indirect wholly-owned subsidiary of Country Garden) conditionally agreed to sell its holdings of Zhuhai Wanda Commercial Management 1 to Zhuhai Wanying or a designated party of Wanda..79% equity with a total consideration of 30.6.9 billion yuan。The announcement said that the net proceeds from the share sale received by Jinyi Global will be used for overseas restructuring.。

In addition, last week, Country Garden's Australian subsidiary, RislandAustralia, was reported to be 2.A $400 million sale of its remaining holdings in Sydney。In response, Country Garden responded that it is currently in active contact and is expected to complete the asset sale in the first half of this year if it progresses smoothly.。

In addition to disposing of assets, Country Garden issued a voluntary announcement on directors' compensation adjustments in mid-December last year.。The remuneration of the company's four directors was reduced to $120,000 from $370,000 to $3 million.。

debt top

Country Garden naturally knows that selling high-quality assets is not good for the company's long-term development, but there is no way, the company's cash flow has dried up, the urgent need to sell assets to "blood transfusion."。

Country Garden also admitted in its previous announcement that the Group is currently facing severe challenges in sales and financing, and that available funds on its books are continuing to decrease.。"Although the Group has made every effort to explore different options, including asset disposals, to raise cash flow to continue to meet its financial commitments, it is still difficult to replenish sufficient cash flow quickly in the short term to improve liquidity in the current market environment, resulting in the Group's cash position remaining significantly under pressure.。"

For Country Garden, many of the asset disposals in recent months have been "cut meat" sales.。For example, in December last year's sale of Wanda's commercial management stake, the proceeds from the sale of the stake, in fact, than its 2021 capital contribution of 32.300 million yuan is still low, two years down also lost 1.600 million yuan。But for the company, a sudden return of more than 3 billion yuan of funds, can solve the urgent need。

Currently, Country Garden is mainly facing severe domestic and foreign debt risks。On the one hand, Country Garden's sale of assets quickly recouped funds, and on the other hand, the company is also actively communicating with bondholders.。

In October 2023, Country Garden said in an announcement that the Group had obtained the necessary consent of the relevant bondholders for a total of nine domestic corporate bonds with a total principal amount of about 14.7 billion yuan, giving the Group time and space to concentrate on resuming operations.。

However, in terms of foreign debt, Country Garden is still under considerable pressure.。According to publicly available information, Country Garden will have two dollar bonds maturing in 2024, the 9.$6.5 billion in debt and 5 due April 8..$3.7 billion in debt。Last week, Country Garden announced that it had appointed KPMG as its main financial adviser for its offshore debt restructuring.。Country Garden said that the company will continue to assess the group's liquidity situation with the assistance of various financial and legal advisers, establish a cooperation and communication platform with all creditors, and jointly formulate an overall plan to comprehensively address the company's current overseas debt risk.。Currently, the work is in progress。

Yang Huiyan: Over 480,000 units expected to be delivered this year

In addition to the debt problem, the guaranteed delivery building is another major pressure that Country Garden needs to face.。

On January 15, Country Garden's official public number said that Yang Huiyan, chairman of the board of directors of Country Garden, said at the 2024 annual working meeting that the group's focus in 2024 is still on ensuring delivery, operation and credit.。"In the process of guaranteeing delivery and optimizing operations, we strive to protect credit and make good communication and arrangements with all relevant parties to enable the company to repair its balance sheet in an orderly manner during the process of guaranteeing delivery."。"

In 2023, Country Garden delivered a total of more than 600,000 houses, with a total delivery area of 71.62 million square meters, involving 249 cities in 31 provinces, of which 44,521 households in 151 batches achieved "delivery and certification."。According to third-party statistics, Country Garden's annual home deliveries once again rank first in the industry, close to the sum of second and third place deliveries。

Yang Huiyan said that the company is expected to deliver more than 480,000 units in 2024, which is still a sky-high delivery task, and the company should be fully prepared in terms of capital, resources and personal status.。

For this year's market situation, the group is expected to remain low, the city sales performance differentiation intensified。Mo Bin, president of Country Garden, noted that the challenges this year may be more severe than imagined, but also said that the market cannot go up forever or down forever.。