Chinese real estate developer Fantasia has missed a $ 206 million repayment deadline. This shows that China’s real estate problem is beyond Evergrande.

Shenzhen skyline

The building stands in the Qianhai business district at sunset on May 29, 2021 in Shenzhen, home of Fantasia. He Shaoping / VCG via Getty Images)

  • Chinese real estate developer Fantasia Holdings was unable to pay a $ 206 million loan on Monday.

  • Just two weeks ago, Fantasia’s chairman said the company had no liquidity issues.

  • The default shows that real estate giant Evergrande isn’t the only one fighting a pile of debt.

  • See other articles on Insider’s business page..

China’s real estate developer Fantasia Holdings said it failed to repay its $ 206 million bond due on Monday, just two weeks after announcing that there were no liquidity issues.

Missing payments have already put a heavy burden on China’s real estate sector, exposing it to a $ 305 billion credit crunch from the world’s most debt-rich real estate giant Evergrande.

Fantasia is worth $ 415 million, Reuters reported, The decline of the sea compared to the evergrande crisis. However, the bond defaults have contributed to concerns that the imminent major collapse of China’s real estate market could destabilize the Chinese economy as a whole.

Shenzhen-based Fantasia is involved in the development of approximately 127 million square feet of land and, as of June, managed a total of 47 projects, primarily for mixed residential and commercial use. I am. Interim report for 2021.

The company issued $ 500 million worth of senior bonds in 2016 and said it was due this year. Exchange declaration on Monday. But when the deadline came, it still had $ 206 million in repayments left unpaid, it said.

“The Board of Directors and our management assess the potential impact on the Group’s financial position and cash position under these circumstances,” read the statement.

Meanwhile, Pan Tao, Chairman of Fantasia Said two weeks ago “We have enough working capital, no liquidity issues, and good operating results,” he said.

Meanwhile, one of Fantasia’s subsidiaries failed to repay another $ 108 million loan that expired on Monday, said Country Garden Holdings, China’s largest real estate developer. According to Bloomberg.

Fitch Ratings too report Fantasia received a $ 150 million bond, but the developers didn’t seem to disclose it in their financial statements. Credit rating agencies have downgraded Fantasia’s rating from “B” to “CCC.” This means that real estate companies carry significant credit risk and can default.

Read the original article Business insider