The buyer consortium pledges the Central Center to trust to raise the loan to complete the acquisition analysis at the beginning of the month: or guarantee the issuance of bonds

The skyrocketing price of RMB 42.0 billion for the Central Centre has already settled in the beginning of the month. However, the financing plan for “Chinese Hong Kong, Macau, Taiwan, and Overseas Chinese to Develop Asian Real Estate” by the China-Hong Kong Consortium has been reported by the China-Hong Kong consortium. Markets include high-interest loans and other loans. According to statistics, a basket of properties at the Central Centre has been pledged to the trust company Madison Pacific Trust and signed by Zhu Liyuehua, one of the representatives of the buyer and the chief executive of Kingston Finance (1031). Some people in the banking sector have estimated that through the mortgaged property, the trust will assist in arranging for debt issuance or financing. Ming Pao reporter Liao Yiran and Deng Weizhong

The newspaper had tried to call and leave a message to the lead Chinese Loyal Hong Kong, Macao, Taiwan, Overseas Chinese Development and Asia Real Estate chairman Lu Wenduan to inquire about the details of the loan, but he did not reply, then later use WhatsApp to send information to inquire, it shows “has read without reply”.

Consortium representative Lu Wenduan did not reply to the query

According to the charge documents, the mortgage is the offshore company THE CENTER (HOLDINGS) LIMITED, which holds 75% of the properties in the Central, and is signed by Zhu Tai as the representative of the company. The mortgaged properties include the ground lobby of the Central Center, parking lot, and land. The multi-storey offices, such as the library, the 19th to 78th floors, and some of the properties such as the exhibition space, also disclose the current list of tenants of multiple properties. As for the consignor’s Madison Trust, the information is shown as a trust company, and Cosimo Borrelli, Managing Director of Borelelli Walsh, a “celebrity industry celebrity”, is also one of the company’s directors. It is understood that Madison’s business involves a number of areas, including helping to arrange for the formation of trusts, loans, issuing bonds, assisting in the restructuring of defaulting trusts, and the formation of charitable trusts. The trust-based loan interest rate is generally higher than bank borrowings

The documents did not disclose the amount and conditions of the loans involved in the mortgage center. Some family fund personnel once estimated that Maddison may act as a middleman in a loan from the Central Center. By assisting the consortium buyer in arranging loans through the concession of properties, there were reports earlier that the buyers of the Center will make loans through issuing bonds. . He said that generally, through the establishment of trusts by trust companies, the interest rate will be higher than that of direct loans to banks. This is mainly due to the fact that most of the loans involved are high-risk projects. Some private equity funds, institutions or Regal families will earn high interest rates by releasing loans. Together with the “arrangement costs” of trust companies, the costs involved will be higher. However, some people in the banking industry believe that buyers are powerful people. In addition, the expected project returns are substantial and the credit risk should not be large. Therefore, the bank may mainly consider the following two points. First, it is necessary to “know your customers (KYC) And the anti-money laundering review, and the second is to meet the HKMA’s restrictions on the proportion of loans for real estate projects.

Buyer or wish to make repayment arrangements more flexible

Some industry sources also revealed that the buyer has not finalized the financing plan and it is not a problem. On the contrary, due to the rising demand for Grade A office space in Hong Kong, the expected rental of the project is considerable. Buyers have been at the upper hand in terms of financing negotiations and want to wait. More bank offers, choose the best solution. He added that the buyer’s final choice is not necessarily the lowest interest rate because the loan has always been the entire package. For the purpose of this center’s size, there may be a bank’s repayment of interest payments or monthly repayments. And other programs.