China Fortune Land sells property units to CR Land in debt restructuring - CNA

SHANGHAI: China Fortune Land Development Co has agreed to sell equity interest and debt in four property units worth 12.4 billion yuan (US$1.8 billion) to a unit of China Resources Land Ltd (CR Land), the companies said.

The deal comes as Chinese regulators encourage financially sound developers to acquire projects from debt-laden rivals to ease liquidity stress in a sector crucial to China's economy.

The transaction is part of a debt restructuring plan unveiled in October as China Fortune Land seeks various ways to ease a liquidity shortage triggered by an adverse economic environment and the pandemic, the developer said in a statement.

Proceeds from the deal "will be used mainly to repay debts ... and promote the implementation of the debt restructuring plan," China Fortune Land said in a statement late on Wednesday (Dec 28).

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