AMC helps real estate companies bail out, Huarong and Dongfang jointly promote 45 real estate risk resolution projects- WSJ

The two major AMCs helped real estate companies bail out. As of the end of October, China Huarong and China Orient have jointly promoted 45 real estate risk resolution projects.

December 1, The PaperAccording to information from China Huarong Asset Management Co., Ltd., as of the end of October,China Huarong is promoting 16 bailout projects for real estate companies. It is expected that the relevant projects will realize the smooth payment of 1.074 billion yuan in construction and material payments from upstream and downstream suppliers, and ensure the on-time delivery of 22,548 sets of commercial housing, driving the resumption of work and resumption of 25.689 billion yuan projects Produce.December 2,surging newsIt is learned from China Orient Asset Management Co., Ltd. (hereinafter referred to as China Orient) that as of the end of October, China Orient has implemented 29 real estate risk resolution projects, with an investment of 13.747 billion yuan, promoting the delivery of 19,800 properties on schedule, and assisting in solving 232 million Wages of 1 yuan for migrant workers and 2.392 billion yuan in arrears from upstream material suppliersrealized the redemption of wealth management products of 7.47 billion yuan of real estate enterprises, and drove the resumption of production of 93.579 billion yuan of real estate projects.

In terms of helping real estate companies to bail out, China Huarong and China Orient both adopted targeted plans to revitalize real estate projects by mitigating risks.

China Huarong makes full use of the characteristic financial toolbox of “debt + equity” and “finance + industry” to actively respond to the bailout needs of distressed real estate companies, through risk isolation, restructuring rescue, resource integration, merger and liquidation, etc., to focus on The key projects of real estate enterprises are the breakthrough point, actively promote the implementation of a number of projects, and realize the “point breakthrough” of key real estate projects around the revitalization of risks.

China Huarong Headquarters took the lead in promoting the resolution of a key distressed real estate enterprise risk project and achieved remarkable results. According to the strategy of “changing passive to active”, a special working group was established to conduct in-depth on-site research on the situation of each project, and determined the principles of classified implementation and risk isolation. Resolve ideas. On the basis of winning government support, we conducted multiple rounds of negotiations and repeated consultations with the group, and through methods such as “equity transfer + implementation of reorganization”, “trust isolation + entrusted construction revitalization”, “litigation preservation + litigation to promote negotiations”, and other methods, finally More than 93% of the projects have achieved risk isolation, and the project companies are gradually returning to normal operations.

China Huarong Jiangsu Branch signed the “Strategic Cooperation Agreement to Support the Transformation and Upgrading of Nantong Construction Enterprises” with the Nantong Municipal Government, and united with local governments and state-owned enterprises to form municipal-level cooperation entities to carry out resumption of construction projects, high-quality project mergers and acquisitions, PPP or BT Project revitalization and other businesses to support the transformation and upgrading of the local construction industry. In addition, the comprehensive use of the “bond acquisition + debt reorganization + property trust” model successfully resolved the bond redemption risk of a listed real estate company and protected the interests of more than 200 social investors.

China Huarong Beijing Branch invested 1.98 billion yuan to support the revitalization of a building in the Beijing Economic and Technological Development Zone. Through debt restructuring, property reorganization and management restructuring, the problem of long-term idle assets and ineffective operation has been solved. At present, about 2,000 talent apartment renovations have been completed. It is estimated that after the renovation is completed, 300,000 square meters of talent apartments can be provided, and the accommodation problem of about 20,000 people in the Economic Development Zone can be solved.

China Huarong Hunan Branch introduced reorganization parties to a large-scale “commercial + residential” complex in Changsha that had been shut down through multiple means of “asset restructuring + debt restructuring + management restructuring” to promote the full resumption of the project. Currently, 500 houses have been handed over multifamily.

China Huarong Fujian Branch cooperated with the “government, the court, and the reorganization party” to introduce industrial investors to reorganize and revitalize the key people’s livelihood project – an international plaza project in Fujian. At present, the development and construction of the project have been fully restarted, and more than 400 new houses have been delivered. More than a thousand households will move in later.

In the process of bailing out real estate companies, China Orient actively explored effective bailout models using investment-banking thinking, tailor-made bailout plans for problematic real estate companies, helped them recover their hematopoietic functions, and helped realize the clearing of risks and a virtuous circle in the real estate industry.

China Oriental Yunnan Branch has invested a total of 4.5 billion yuan in reorganization funds in recent years. Through the reorganization plan of “bankruptcy reorganization + repayment of debts with property + introduction of industrial investors”, it helped resolve the Southwest Sea project located in Kunming Dianchi National Tourist Resort ( hereinafter referred to as the project). The project was started to be developed by a real estate company in Yunnan in 2010, but affected by subjective and objective factors, the company had a cash flow crisis, which led to the suspension of the project in 2014. The project involves many rights and interests such as demolition and house purchase, as well as non-performing creditor’s rights of many financial institutions. The accumulated debt amount is as high as 16.9 billion yuan, and the underlying assets have been mortgaged and seized many times, making it extremely difficult to get rid of the project. After many efforts and long-term revitalization and operation, the difficult real estate enterprise has resumed normal operation and achieved good economic benefits. It has become the first real estate project in Yunnan Province that has been deeply involved in bankruptcy and reorganization by a financial asset management company. 4,149 house buyers solved the project closing problem and handled the property right certificate, and solved the problem of project resumption, production resumption and house delivery for 1,220 house buyers who did not live in the house.

On July 28, the Political Bureau of the Central Committee of the Communist Party of China held a meeting and first mentioned “guaranteeing the delivery of buildings and stabilizing people’s livelihood”. The meeting pointed out that it is necessary to stabilize the real estate market, adhere to the positioning that houses are used for living in, not for speculation, implement policies according to the city and make good use of the policy toolbox, support rigid and improved housing demand, compact local government responsibilities, and guarantee transportation. building and stabilizing people’s livelihood. Subsequently, new regulations related to “guaranteed handover buildings” were introduced in many places, involving strengthening the supervision of pre-sale funds and existing house sales.

On August 12, the China Banking and Insurance Regulatory Commission will talk about “guaranteed delivery of buildings”. The person in charge of the relevant departments of the China Banking and Insurance Regulatory Commission stated that the next step of the China Banking and Insurance Regulatory Commission will continue to implement the decisions and deployments of the Party Central Committee and the State Council, continue to adhere to the positioning that houses are for living in, not for speculation, and further implement the real estate financial prudential management system, effectively Meet the reasonable financing needs of real estate companies, vigorously support the construction of rental housing, support project mergers and acquisitions, and focus on new citizens and urban young people to better meet rigid and improved housing needs. Strengthen work coordination with all parties, cooperate to actively promote the work of “guaranteeing the delivery of buildings and stabilizing people’s livelihood”, provide relevant financial services in accordance with laws and regulations, and promote a virtuous circle and healthy development of the real estate industry.

On November 11, the central bank and the China Banking and Insurance Regulatory Commission jointly issued the “Notice on Doing a Good Job of Financial Support for the Steady and Healthy Development of the Real Estate Market” (hereinafter referred to as the “Notice”). 16 clear requirements have been made in terms of protection of the rights and interests of financial consumers, and phased adjustment of financial policies.

The “Notice” stated that financial asset management companies and local asset management companies (hereinafter collectively referred to as asset management companies) are encouraged to use their experience and capabilities in non-performing asset disposal and risk management to jointly negotiate risks with local governments, commercial banks, and real estate companies. Dissolve the model and promote faster asset disposal. Encourage asset management companies to cooperate with third-party institutions such as law firms and accounting firms to improve the efficiency of asset disposal. Support qualified commercial banks and financial asset management companies to issue real estate project mergers and acquisitions themed financial bonds. Encourage asset management companies to participate in project disposal by serving as bankruptcy administrators and restructuring investors.

Source of this article: The Paper, original title: “AMC Helps Real Estate Enterprises Rescue, Huarong and Dongfang Promote 45 Real Estate Risk Resolution Projects”