30-06-2014, 12:15 PM
A closely held Shanghai developer has suspended construction at a property project due to a lack of funds, according to two government officials familiar with the matter.
Construction at Shanghai Yuehe Real Estate Co.’s mixed-use project, including residential, office and retail space, in the city was halted this month and the project was frozen by a court, according to the people, who asked not to be identified because they aren’t authorized to speak publicly about the matter. Shanghai Pudong Development Bank Co. (600000), a medium-sized Chinese bank, loaned about 240 million yuan ($39 million) to the 220,000 square meter (2.4 million square foot) development in suburban Jiading district, they said.
“There will be more developers having troubles as the property downturn prolongs,” said Duan Feiqin, a Shenzhen-based property analyst at China Merchants Securities Co., in a phone interview today. “Many Chinese cities face oversupply of those mixed-use property projects amid the e-commerce boom, while a lot of developers, especially those small ones, are not capable of doing such developments.”
Read more here
Small fish are starting to die in the polluted seas...
Construction at Shanghai Yuehe Real Estate Co.’s mixed-use project, including residential, office and retail space, in the city was halted this month and the project was frozen by a court, according to the people, who asked not to be identified because they aren’t authorized to speak publicly about the matter. Shanghai Pudong Development Bank Co. (600000), a medium-sized Chinese bank, loaned about 240 million yuan ($39 million) to the 220,000 square meter (2.4 million square foot) development in suburban Jiading district, they said.
“There will be more developers having troubles as the property downturn prolongs,” said Duan Feiqin, a Shenzhen-based property analyst at China Merchants Securities Co., in a phone interview today. “Many Chinese cities face oversupply of those mixed-use property projects amid the e-commerce boom, while a lot of developers, especially those small ones, are not capable of doing such developments.”
Read more here
Small fish are starting to die in the polluted seas...