UPDATE 1: KWG-Logan HK Corniche Project 12 Units Sold for HKD 660M From August to October, Covering ~62% Annual Interest of HKD 8.2B Refinancing; Recent ASP ~HKD 28-32k/sqft 

Fri Nov 01, 2024 05:17 AM ET:  Credit Research: Ken Yao, Credit Analyst Distressed Chinese developers KWG Group and Logan Group obtained an HKD 8.2 billion ($1.05 billion) refinancing facility on Aug. 15 to repay a project loan in respect of their Hong Kong luxury residential development, The Corniche. From August to October, they have sold 12 additional units totaling HKD 660.3 million, covering 23,687 square feet based on Hong Kong Government data and Octus estimates. This amount represents around 62% of the annual interest on the HKD 8.2 billion facility with a 13% interest rate. As of Oct. 31, 42 out of 295 units of The Corniche were sold for a total of HKD 3 billion:   Source: Hong Kong Government Data, Company Disclosures, Octus Estimates, See Excel Octus estimates that the remaining units of The Corniche will need to sell for at least HKD 18,000 per square feet, or psf, to cover the principal and interests of its HKD 8.2 billion facility:     In HKD mil Project Loan 8,200 Tenor (years) [assuming no extension] 2.5 Rate 13%     Total: Principal + Interest 11,398 Remaining Saleable Area as of Aug. 15 (sq. ft.) 605,358     Principal[...]