HNA Kai Tak Kai two “crowdfunding” fund 780 million admission two return options
HNA Group borrowed money to repay the debts of Kai Tak land there are new tricks, Bloomberg quoted a referral file pointed out that HNA is selling a fund with two of the Kai Tak land as the target assets, the minimum investment per investor Amounting to one million U.S. dollars (about 7.8 million Hong Kong dollars), investors can have two options: two years, 9% annual rate of return, the second year is divided into 5% of the project profits; or hold four years, the final project Profit 40% into. Some investment bankers pointed out that this kind of crowdfunding form first appeared in Hong Kong, but the share is not high, may not be able to attract professional investors to buy.
Such as high interest bonds into less attractive
After a total of 27.22 billion yuan was invested by HNA Group into the 4 Kai Tak Development Area land lots, the problem of shortage of funds was repeatedly reported. At present, there are still four short-listed loan loans of 10.12 billion yuan to be settled. The forthcoming fund raising exercise involves the assets of the first two Kai Tak plots which HNA acquired in November and December 2016 and the bridge loans for the two plots have been extended for repayment period to February 23 On July 15 and July 15, they involved 2.8 billion and 2.5 billion respectively. Another 2.6 billion and a loan of 2.22 billion yuan will expire in February and June.
The document does not list the total amount of funds sought by HNA and the maximum investment amount per investor. According to the sources, HNA no further information can be disclosed.
If the threshold of the above-mentioned fund is calculated at the threshold of about $ 7.8 million and no additional investment will be made, it will not touch the $ 8 million limit which is regarded as a boundary of the collective investment scheme and must be subject to regulation. The purchaser may fund less than 800 in the name of a professional investor Million to participate in the fund.
Investment bank said the fund for HNA is only a disguised high-interest bonds, and targeted at professional investors, but divided into the prerequisites for the project to be rewarded at a cost premium of about 13,000 yuan per square foot and The construction cost is about 6,000 yuan per square foot. The development cost is 19,000 yuan per square foot. The price per square foot of the new building in the same district is more than 20,000 yuan. The 40% profit is meager profit, which is hard to attract investors’ favor. HNA urgently needed funds to solve the problem and did not rely on the project to make money. I believe it will increase profits to 80% in order to attract investors’ attention.
Swissport to Swiss IPO
Patrick Wong, a real estate analyst at Bloomberg Research, believes developers in Hong Kong seldom fund external investors for real estate projects because they can easily borrow from banks at low interest rates. According to people familiar with the situation, three Chinese banks have frozen a portion of the unused credit facilities of some of HNA’s subsidiaries in recent weeks when some of their Chinese banks have failed to repay the loan principal or interest in time.
Earlier it was reported that HNA is negotiating a loan with Xindi (00016) for the repayment of bridge loans arranged for the purchase of Kai Tak land. However, it did not disclose the loan amount and HNA reportedly pays Sun Li to pay an annual interest rate of 9%. The new chairman Kwok Ping-lian responded a few days ago that “it is too early to say” and that some news will be announced.
On the other hand, HNA Group’s Swissport Group said in a statement that the company is seeking an initial public offering this year and will be listed on the Swiss stock exchange in Zurich.