Country Garden Looking to Sell Properties worth CNY 3.8B

According to a property trading platform, Chinese property developer Country Garden aims to raise 3.8 billion yuan ($530 million) from the sale of properties in Guangzhou. The property includes a hotel complex, four office towers, a shopping mall and five rental buildings, according to a Jan. 19 listing by Guangzhou Enterprises Mergers and Acquisitions Services.

Country Garden, China's largest property developer, is among a long line of Chinese developers facing bankruptcy as the sector plunges into crisis in mid-2021 after authorities attempt to curb excessive debt.

It defaulted on US$11 billion worth of offshore bonds in October and has also extended repayments for its onshore notes. Last week, Country Garden said it has agreed to sell a stake in an Australian residential project, the latest in a series of sales that would bring it closer to a complete exit from the country.

In 2023, Country Garden joined the ranks of property companies such as Evergrande Group, succumbing to the 2020–2023 Chinese property sector crisis. Following a series of credit rating downgrades and delayed bond coupons due to a liquidity crisis, the company missed US$15 million in payments in October 2023, triggering cross defaults in up to $11 billion of offshore bonds.