China property: Country Garden auctioning US$530 million worth of assets in Guangzhou to overcome cash crunch, defaults
- The Foshan-based developer has listed five properties for sale in Guangdong’s provincial capital, including a five-star hotel valued at US$181.5 million
- Last week, Country Garden’s Australian arm finalised the sale of its Sydney development, paving the way for its exit from the country
The move comes on the heels of an agreement struck last week by the developer’s subsidiary to sell its last investment in Australia.
The Foshan-based developer, once China’s largest home builder by sales, is auctioning five properties in the capital of the southern Guangdong province, according to a recent listing on Guangzhou Enterprises Mergers and Acquisitions, a property-transaction platform.
“At the moment, investors in the mainland, especially those owned by the state, still have plenty of dry powder, so they might consider [picking up] property projects, especially the good ones,” said Shen Meng, a director at Beijing-based investment firm Chanson & Co. “One main thing to consider is whether the listing prices are attractive enough. In Country Garden’s case, there will definitely be room for negotiation.”
The assets – two office towers, a hotel, a residential building and commercial property – have a combined base price of 3.82 billion yuan (US$530 million), marking Country Garden’s most ambitious attempt at divestments in the city.
Country Garden Phoenix City Hotel, a 573-room five-star hotel, has an asking price of 1.3 billion yuan, while an office building in the southern district of Panyu, is listed at 1.2 billion yuan, according to data available on the platform.