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bloomberg
Hong Kong shopping mall operator Lifestyle International is in talks with banks to refinance a loan supporting a landmark retail project at the Kai Tak mega-development.
If the syndicated loan is signed, the total amount will be in the range of HK$7 billion to HK$8 billion.
The loan being refinanced by the company is a two-year syndicated facility signed in June 2022 for a HK$6.95 billion project by Lifestyle Co., Ltd. in the Kai Tak area facing Victoria Harbour, which will include development including a sports park. It is an area facing Victoria Harbour.
Originally scheduled to open two years ago, lifestyle flagship department store Twins in East Kowloon’s Kai Tak district has been hit by delays. In January, the company denied speculation on social media about its plans for a Kaitoku Sogo store, one of two towers at Twins, scheduled to open by the end of the year.
Lifestyle International was taken private by its chairman in a HK$1.9 billion deal after it warned that profits would fall by at least 80% in the first half of 2022. The company’s previous interim report showed that consolidated current liabilities exceeded current assets by approximately HK$2 billion. The company has approximately US$1.2 billion (HK$9.36 billion) in loans and bonds due in 2024.
Hong Kong’s retail industry is facing headwinds. The exodus of locals and expatriates and a new trend of cross-border shopping in Shenzhen have squeezed the purchasing power of local retailers and residents in recent months.
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