Kaydar Hub International Plaza (ITC), which is responsible for public facilities and municipal functions, is the first TOD project in China. The total investment of Guangzhou Kaydar Hub International Plaza exceeds 5.7 billion, and it has become a landmark in Zengcheng District, Guangzhou. However, it has been due to funding since 2019. The problem has been caught up in lawsuits one after another. China Huarong Guangdong Branch is looking for a transferee for a 397 million creditor's rights to the Kaedal Group.

On August 9, Cadall Group issued a statement stating that it had terminated the cooperation relationship with its project partners and was reorganizing the project with Guangzhou's intended enterprises.

"This project dragged us on for a long time, and we didn't want to do anything when the contract expired, so we sue it." In the past two months, Guangzhou Kaidal Investment Co., Ltd. has been involved in more and more lawsuits. The plaintiff in one of the cases told Times Finance , "I was indeed owed money, and there are more than 10 million (not returned)."

The main asset of Guangzhou Cadall is Cadall Plaza, a TOD transportation hub complex project located in Xintang Town, Zengcheng District, Guangzhou, which is known as "the first real TOD in China".

In November 2013, Guangzhou Kaidal bid for a land plot at a price of 684 million yuan. Three months later, the State Council agreed to withdraw Zengcheng as a district and become the second largest administrative district under Guangzhou.

Recently, China Huarong Guangdong Branch is looking for a transferee for an overdue debt in Huarong Zhongguancun's Non-Performing Asset Trading Center. The total amount of this debt is nearly 397 million yuan, including 340 million yuan in principal and about 59 million yuan in overdue interest. The interest debtor is Guangzhou Kaidal’s parent company Shenzhen Kaidal Group Co., Ltd. (hereinafter referred to as "Kadal Group") , And the collateral is the construction in progress on floors 10-28 of the West Tower of Kedal Plaza, with a total construction area of 34,900 square meters.

This debt is a non-performing asset acquired by China Huarong Guangdong Branch from the bank. The debt was overdue at the time of the bank, and the amount involved is also the largest amount that has been disclosed so far. According to the information released by the Exchange Center, the creditors have not filed lawsuits and adopted legal measures for overdue matters. Although Cadall was temporarily exempted from judicial proceedings, in fact it has been involved in successive lawsuits due to funding issues since 2019.

Times Finance reported that as early as September 2019, Shenzhen Tongxin Small Refinance Co., Ltd. (hereinafter referred to as "Tongxin Small Refinance Company") had a financial agreement with Kadall Group, 3 subsidiaries including Guangzhou Kadall, The actual controlling shareholder Ji Liju and shareholder Cai Lishan have applied for property preservation before litigation, with a total value of approximately RMB 73.94 million.

In fact, on June 11, 2021, Zengcheng officials once responded to netizens whether the Kaidal Plaza was unfinished due to funding issues. The answer at that time was "The project involved is initiating investment and financing related projects. Work and strive to complete the project as soon as possible"; the creditor of the Cadall Group, China Huarong Guangdong Branch, also stated in its asset promotion announcement that the group is in "negotiations with a number of interested parties on the reorganization of this project."

According to industry insiders, CITIC Pacific's withdrawal of investment and the withdrawal of the investment industry, coupled with poor sales after the project opened, brought the project into a vicious circle, and eventually the capital chain broke, forming the current situation of Kaidal Plaza.

The government intervenes in the reorganization

Different from common shutdown or unfinished projects, the construction progress of Kaidal Plaza is almost "on the doorstep". Times Finance understands that this project covers an area of about 38,700 square meters, with a total construction area of 348,800 square meters. It is divided into three parts: the basement-commercial podium, the auxiliary tower (East Tower), and the main tower (West Tower). For four types of properties, including hotels, offices and apartments, as of October 2020, the project has completed an investment of 5.7 billion yuan. At present, the East Tower and West Tower have been capped, the overall completion rate of the curtain wall has exceeded 95%, and the garden landscape project has been completed about 96%.

However, such construction progress is far behind expectations.

Kaidal Plaza started construction in December 2014. According to the plan, the ground-level shopping mall should be put into operation on January 1, 2019, while the hotel and office buildings should be fully completed and put into operation on December 30, 2019. Since then, the completion date of the project has been pushed forward again and again. According to market sources, the apartments that have been signed online have also been delayed for one year, from the originally scheduled May 1, 2021 to the same period in 2022.

The official WeChat account of the Kaydar Hub International Plaza responded positively to issues such as unfinished products and equity mortgages.

1. The project continues to advance so far.

There are two main reasons for the construction delay: The Kaydar Hub International Plaza project integrates four types of 10 rail transit, including high-speed rail, subway, intercity rail, and urban cloud rail, which has brought great influence to the construction of the Kaydar project. challenge. At the same time, due to the sudden outbreak of the new crown epidemic in 2020 and many other reasons.

2. Project equity pledge is a routine operation of corporate loans.

In 2017, the ITC project was supported by ICBC’s syndicated development loan of 2 billion yuan. The equity of the project company was pledged to the development loan bank, which is a conventional practice for corporate development loans. In addition, the debts of the project and the Tongxin Small Loan have been settled in 2019, and the Tongxin Small Loan has issued a settlement certificate that year.

3. Governments at all levels in Guangzhou support the reorganization.

Partners have participated in the project successively, and due to their respective strategic choices, the cooperation relationship was terminated amicably. At present, the ITC project is undergoing project reorganization with Guangzhou's intended enterprises. The reorganization work is progressing smoothly with the strong support of governments at all levels in Guangzhou. Editor/Sang Xiaomei