Gao Yin borrowed money while buying land.
The signs of Chinese-owned whales swallowing Hong Kong land are rising again. Gao Yin (530) recently threw 11.12 billion yuan to win a commercial and hotel site in Kai Tak, repelling the strength of consortiums such as Cheung Kong (1113) and SHKP (016). What is puzzling is that Gao Yin bought the land at a high price and borrowed the land on his hand. Last year, Gao Yin was looking for a long-term mortgage to obtain financing. The interest rate cost was as high as 8%. The newspaper found that Gao Yin had not been renewed in a contract. In April, it switched to Deutsche Trust to borrow money, but the form became a priority secured bill. Many terms are very spicy.
No real renewal, Deutsche Trust took over
Gao Yingang spent 8.9 billion yuan to buy the next Kaide residential land six months ago. The silver price of this sweeping goods is higher. The land price per floor is as high as 12,888 yuan, which is close to the market expectation ceiling. It’s just that Gaoyin’s heroic “sprinkling water” is also “watering” around it. It uses the Gaoyin Financial International Center, which is owned by its subsidiary, and is located in Kowloon Bay, as a collateral for financing. Real estate contracted a short-term mortgage, borrowing 10.2 billion yuan.
The mortgage book expired at the end of last year, but Gao Yin has not made any new arrangements. The documents uploaded by the Land Registry in April showed that Gao Yin and Cheung Kong subsequently signed three additional supplemental agreements, which were in December last year, January this year and March this year. Until April of this year, Deutsche Trust took over the “discharge” and repaid the mortgage loan borrowed from Cheung Kong.
Whether it is the above three supplementary agreements or the mortgage agreement signed with Deutsche, it is mysterious, and does not disclose the interest cost and the actual due date. According to the mortgage agreement documents, Deutsche Trust is in the hands of the priority secured documents, and the floating rate is expected to expire in 2021, but it may be extended to 2022. Although Gao Yin’s repayment period is at least two years, it only received 6.8 billion yuan of funds, which is a 33.3% reduction from the silver code borrowed by Cheung Kong.
Moreover, this mortgage agreement imposes many restrictions on Gao Yin, including the listing of Deutsche Trust as a guarantee agent. Once the property is required to be auctioned, Gao Yin must immediately execute it; once Gao Yin defaults, Deutsche Trust can accept it as collateral. Cash proceeds from shares or investments; Gao Yin must obtain written consent from Deutsche Trust or comply with the specified conditions before withdrawing funds or using funds from any bank account.
At present, Gaoyin Financial International Center has a variety of tenants, including the Belt and Road International Chamber of Commerce Ltd., Jianshang Technology Group and PCCW (008). Pan Sutong, the major shareholder of Gaoyin, has a very aggressive investment strategy. After buying the property, using property financing and then annexing the next property, the cycle is not limited, but in the environment of the rising property market in Hong Kong, the music chair game still has fun.