Heavily-indebted Chinese developer CIFI looks to offload prized Shanghai commercial property assets after 1.5 billion yuan bond fails to take off

Selling good-quality assets means the developer is really tight on funds, analyst says

Shanghai-based firm has failed to generate interest in note backed by state-owned China Bond Insurance Corporation

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The Shanghai Henderson CIFI The Roof, a commercial complex in Xintiandi district designed by Pritzker Architecture Prize winner Jean Nouvel, is among assets the developer is looking to sell. Photo: Weibo

Pearl Liuin Hong KongandDaniel Renin Shanghai

Published: 8:30am, 9 Mar 2023

Chinese property developer CIFI Holdings is looking to sell its crown-jewel assets in Shanghai, including its headquarters, after its state-guaranteed yuan bond issuance hit a snag.

The developer has put three shopping centre and office complex projects, as well as an office project with two blocks, on the market, according to a brochure seen by the Post. It has also put Henderson CIFI Centre in Shanghai’s Hongqiao district, which contains its headquarters, up for sale.

The developer, which announced it had defaulted on US$318 million in offshore debt on November 1 last year, is facing the maturity of 534 million yuan (US$76.67 million) in onshore interest and principal payments this year. And now it seems that a lack of progress with a bond issuance of up to 1.5 billion yuan is pushing it to offload prime assets.

CIFI declined to comment on the asset sale as well as the bond issuance.

“Giving away such good-quality assets means the developer is really tight with its credit line,” said Yan Yuejin, director of the Shanghai-based E-house China Research and Development Institute. “It is not a good time to offload commercial assets in China, unless the seller has no other choice.”