Property developer Sunac China reportedly applied to develop some projects in Zhengzhou with government funding
Property developer Sunac China reportedly applied to develop some projects in Zhengzhou with government funding

Property developer Sunac China reportedly applied to develop some projects in Zhengzhou with government funding

 

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Chinese property developer Sunac China has filed an application to relevant government department in Zhengzhou, capital of Central China’s Henan province, hoping to develop six of its projects in the city in the form of shantytown renovation financed by loans applied under the government’s name, reported mainland news outlet Cailianshe.

Under the “shantytown renovation” development mode, the property projects will be taken over by a local government financing vehicle (LGFV). The local government will designate a LGFV which will apply for shantytown redevelopment loan quota from the China Development Bank, the country’s top policy bank, on behalf of property developers.

The LGFV will then distribute the funding to each project and the later stage of the project development will be directed by the government. The LGFV will also make arrangement for the repayment of the loans, according to the report.

Notably, the local government in Zhengzhou has reportedly held a meeting with the local housing regulator, district governments and seven major property developers including Sunac China, aiming to help the homebuilders address difficulties, part of efforts to ensure property delivery and resolve the ongoing mortgage boycott crisis. Read more …