Key Takeaways
- • A consortium led by Gaw Capital Partners is seeking to refinance a HK$14.4 billion (about $1.8 billion) loan secured by a number of Hong Kong shopping centers, according to people familiar with the matter.
- • The potential facility would have a three-year term, and the group is seeking cheaper borrowing costs than the existing financing.
- • Discussions are ongoing and terms have not been decided, according to the sources, who asked not to be identified.
- • The refinancing effort comes as the recovery in Hong Kong retail sales remains uneven.
Summary
A consortium led by Gaw Capital Partners, the Hong Kong-based private equity firm, is seeking to refinance a HK$14.4 billion ($1.8 billion) loan backed by several Hong Kong shopping centers, according to people familiar with the matter, Bloomberg reported. The sources said the group is pursuing a potential three-year facility and is seeking cheaper borrowing costs.
The sources described discussions as ongoing, and said terms have not yet been decided. They asked not to be identified because they were discussing private matters. Bloomberg's report did not name the lenders involved or specify the existing loan's pricing or maturity.
The effort comes as Hong Kong's retail sector continues to recover unevenly, a backdrop that bears directly on the collateral value and cash flows of retail real estate assets. For institutional investors with exposure to Hong Kong commercial property or real estate debt, the refinancing terms will be a useful indicator of lender appetite and financing costs for the segment.
The sources described discussions as ongoing, and said terms have not yet been decided. They asked not to be identified because they were discussing private matters. Bloomberg's report did not name the lenders involved or specify the existing loan's pricing or maturity.
The effort comes as Hong Kong's retail sector continues to recover unevenly, a backdrop that bears directly on the collateral value and cash flows of retail real estate assets. For institutional investors with exposure to Hong Kong commercial property or real estate debt, the refinancing terms will be a useful indicator of lender appetite and financing costs for the segment.
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