SINGAPORE: Hopson Development Holdings is in talks with Seatown Holdings, a subsidiary of Temasek Holdings, for a new loan to refinance an expired bridge facility, sources close to the matter have said.
The Edge Singapore reported that negotiations for the new loan with Seatown are ongoing, with details yet to be finalised.
Earlier in the year, Hopson, known for its high-end residential and commercial projects in Beijing and Guangzhou, secured a four-month bridge loan from Seatown valued between US$100 million (S$132.56 million) and US$115 million (S$152.44 million).
Despite the bridge loan being due in September, Seatown has not requested immediate repayment; instead, both sides are discussing a new facility, sources said.
Details on the new loan remain unclear, but sources added that it will involve a different pricing.
Like many Chinese developers, Hopson has experienced declining sales as China’s property market continues its years-long downturn.
Although the government recently introduced stimulus measures, financial risks for developers remain high.
According to Bloomberg’s compiled data, over 20 Chinese developers have faced wind-up petitions.
Hopson’s bridge loan was intended to extend the term of a US$165 million (S$218.72 million) loan from Seatown in 2023, which helped finance Hopson’s purchase of two floors and four parking spaces at The Center in Hong Kong’s central business district.
The Edge Singapore said Seatown declined to comment, noting that it does not discuss specific transactions or respond to speculation. Meanwhile, Hopson did not reply to an email request for comment.
As of June 30, Hopson reported total assets of HK$287.5 billion (S$49.02 billion) in its interim report.
In an October statement, Fitch Ratings affirmed Hopson’s B rating with a stable outlook, noting the company faces “manageable refinancing risk” and has “sufficient” liquidity to cover near-term debt repayments. /TISG
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