Banks Move to Seize Shimao's HK$4.5 Billion Sheraton Hotel Loan Collateral
Updated
Updated · Bloomberg · Jun 5
Banks Move to Seize Shimao's HK$4.5 Billion Sheraton Hotel Loan Collateral
1 articles · Updated · Bloomberg · Jun 5
Summary
A bank group is in advanced talks to appoint receivers for Shimao Group’s more than 1,200-room Sheraton hotel near Hong Kong airport, aiming to speed a sale and recover debt.
The move follows a default late last year by Shimao units on a HK$4.5 billion ($575 million) loan tied to the property.
HSBC, Bank of China (Hong Kong) and Bank of East Asia were among the original lenders to the project, according to people familiar with the matter.
A takeover of the airport-adjacent hotel would mark another asset disposal tied to stress in China developers’ offshore and Hong Kong-linked financing.