On January 3, Sunac China Holdings Co., Ltd. (HK 01918) announced that it would transfer 51% of the equity and creditor’s rights of Shenzhen Ronghua Land Investment Co., Ltd. to Zhuhai Huafa, with a total amount of about 3.58 billion yuan.
According to people familiar with the matter, in order to revitalize the ice and snow cultural tourism city project as soon as possible, the Shenzhen Municipal Government took the initiative to coordinate with multiple parties to negotiate and negotiate to solve the current difficulties of the project.
Zhuhai Huafa stated that the transaction will help ensure the smooth progress of the project’s subsequent development, sales, and operations, and safeguard shareholders’ rights and interests.
Shenzhen Ice and Snow Cultural Tourism City is the first project of Sunac Cultural Tourism in Shenzhen. On November 6, 2020, Zhuhai Huafa and Shenzhen Sunac Cultural Tourism signed the “Shenzhen Baoan District Ice and Snow Cultural Tourism Land Project Cooperative Development Agreement” and other related agreements, agreeing to jointly develop the land of Shajing Street, Baoan District, Shenzhen. The two parties jointly set up a project company, Ronghua Land, as the main body of the development of the project plot. Among them, Zhuhai Huafa holds 49% of the equity of the project company, and Shenzhen Sunac Cultural Tourism holds 51% of the equity of the project company. The financial statements of the project company are prepared by Shenzhen Rongchuang Cultural Tourism. merge.
The project company mainly develops the Sunac Huafa Ice and Snow Cultural Tourism City project located in Shajing Street, Baoan District, Shenzhen, which includes residential, ice and snow world, commercial, hotel and office buildings and other diversified formats. The total area of the project is 436,800 square meters. The rate construction area is 1.3107 million square meters. The ice and snow world planned by the project was originally expected to open in November 2025.
In the second half of 2021, the industry will encounter liquidity difficulties, and the development progress of Shenzhen Ice and Snow Cultural Tourism City will also be directly affected. In May last year, market sources said that Shenzhen Metro and Vanke were negotiating with Sunac to acquire a 51% stake in the Shenzhen Ice and Snow City project. In the end, the project was still taken over by Huafa.
This is not the first time that Huafa has acquired equity in a Sunac project. On December 31, 2021, Huafa acquired a 40% stake in the second phase of Kunming Sunac Cultural Tourism City at a transaction price of 1.4 billion yuan, including a cash consideration of 1.2 billion yuan and a debt of 200 million yuan. The second phase of Kunming Sunac Cultural Tourism City was originally jointly developed by Huafa and Sunac, and it was also the first project of Huafa in Kunming.
It is understood that after the share transfer of Shenzhen Ice and Snow Cultural Tourism City, Huafa and Sunac will also set up a joint venture company to jointly be responsible for the subsequent development, construction and sales of the project, as well as the operation and management services of ice and snow projects and hotel projects. The project may continue to use Sunac brand.
It is worth noting that before November 23, 2025, Shenzhen Sunac Cultural Tourism has the right to repurchase the underlying equity and underlying debt. In addition, as of the effective date of the acquisition agreement, the project company failed to pay off all the remaining land premium. Zhuhai Huafa will provide the project company with a shareholder loan of 6.355 billion yuan to pay the remaining land premium (principal) while acquiring 51% of the equity. ).
36 krypton author Wang Lu
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Event Tracking
- 2023-01-03 Sunac transferred 3.68 billion yuan to transfer the equity of Shenzhen Ice and Snow Cultural Tourism City, and Huafa took over again
- 2022-12-09 Sun Hongbin apologized for Sunac’s substantial impairment of M&A assets for losses
- 2022-12-06 Sunac released the latest domestic debt restructuring plan, and the current debt that has not been extended will be extended for 4 years
- 2022-12-02 Why AMC, Trust and Six Banks Enter Sunac Dongjiadu Project
- 2022-11-30 Sun Hongbin moved to “rescue soldiers”: Shanghai Dongjiadu project will attract more than 12 billion yuan
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