A property development project in Chongqing's Jiangbei District, which was once planned as the city's tallest building, is scheduled for a judicial auction next month with a starting price of approximately 2.002 billion yuan.
According to the Alibaba Asset Judicial Auction platform, the land parcel and the unfinished construction project located in the Jiangbei City area, with the designation A13-1/05, will go under the hammer on July 9. The auction is being conducted by the Gansu Mining Area People's Court. The starting price is about 2.002 billion yuan, which represents 80% of the assessed value of 2.502 billion yuan. The required deposit for bidders is a substantial 200 million yuan.
The plot covers a land area of 29,126.7 square meters, with an above-ground floor area of 49,794.79 square meters. It is designated for commercial, financial, and residential use, with a split of 70% for commercial purposes and 30% for residential. The overall plot ratio is 18.88, the building density is not to exceed 70%, and the maximum building height is controlled at 470 meters. The land use rights commenced on October 25, 2013, with the residential portion valid until October 25, 2083, and the commercial and financial portion until October 25, 2053.
The owner of the auctioned asset is Chongqing Sunac Huacheng Real Estate Development Co., Ltd. Corporate records show that this company was established on August 16, 2012, with a registered capital of 200 million yuan. Its shareholders are Sunac Southwest Real Estate Development Group, holding a 60% stake, Chongqing Shangjin Huacheng Industrial Group with 35%, and Chongqing Laohu Asset Management Co., Ltd. with 5%.
The project being auctioned, known as A-ONE, was once planned to be Chongqing's tallest building.
Located in the Jiangbeizui financial core area, the project was planned to include a 470-meter main tower and three auxiliary towers, with a total investment estimated at around 20 billion yuan. The land was originally acquired in October 2012 by Chongqing Huacheng Fuli Real Estate Development Co., Ltd. for 1.74 billion yuan, representing a 58% premium. However, due to funding issues, construction on the project first halted in 2014.
In May 2017, Sunac China Holdings Ltd (HKEX: 01918) acquired a 60% equity stake and related creditor's rights in Huacheng Fuli for a total consideration of approximately 2.1 billion yuan, which included about 120 million yuan for the equity and 1.98 billion yuan for the debt. The company was subsequently renamed Chongqing Sunac Huacheng Real Estate Development Co., Ltd. The project was relaunched under the new name "A-ONE" in September 2019, officially commenced construction in April 2020, and was listed as a major municipal construction project in Chongqing.
Regarding construction progress, foundation work was completed between 2017 and 2018. Main structure construction on the T4 tower began in 2019, reaching 25 stories above ground, though equipment installation was not completed. Work on the other towers only progressed to earthworks and slope protection. Subsequently, impacted by the debt crisis at the Sunac group, the A-ONE project was suspended again in July 2022, leading to its current placement on the judicial auction block.
This auction was initiated by the mortgagee, Everbright Xinglong Trust Co., Ltd., based on a civil judgment from the Lanzhou Intermediate People's Court of Gansu Province. Everbright Xinglong Trust has the right to have the mortgaged asset—the state-owned construction land use rights for the specified parcel—sold, with the proceeds to be used for prioritized repayment within the contracted guarantee scope.
Assuming the judicial auction is completed, the proceeds, after deducting related auction fees and taxes, will be prioritized for repaying the mortgagee's claim.
Sunac China Holdings Ltd will engage a third-party audit firm to evaluate the amount available for repaying the principal and interest of its extended bonds following this auction. If the disposal generates proceeds, they will be used, in accordance with the extension plan approved by bondholders, to prioritize the repayment of principal and interest on those extended bonds.
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