(Bloomberg) -- Agile Group, the junk-rated Chinese property developer, will sell its 26.7% stake in a Guangzhou property joint venture for 1.84 billion yuan ($290 million), the latest sign that asset sales to state-owned firms may help ease the industry’s liquidity crisis.

Chinese developer Yuzhou Group Holdings Co. said it won’t pay off two dollar bonds due this week, meaning some events of default will occur, as builders continue to struggle to meet debt payments.

A recovery in China’s stricken property industry could take six to 12 months on an optimistic basis if a potential easing of escrow rules occurs, CCB International said.

Key Developments:

  • China Builder Agile to Sell $291 Million JV Stake to State Firm
  • Vanke Overseas to Raise Net GBP56m From London Property Sale
  • Evergrande Appoints Cinda’s Liang as Non-Executive Director

China Builder to Miss Dollar Bond Payments After Debt Exchange (9:05 a.m. HK)

Chinese developer Yuzhou Group Holdings Co. said it won’t pay off two dollar bonds due this week, meaning some events of default will occur, as builders continue to struggle to meeti debt payments.

The company earlier this month offered to swap the notes for new debt, and investors exchanged most of their holdings. There’s $104.9 million of combined principal remaining, Yuzhou said in a Monday stock exchange filing, and it’s opting not to pay that while planning to relaunch the exchange offer this week.

Yuzhou to Maintain Talks With Bondholders After Exchange Offer (8:40 a.m. HK)

Yuzhou Group plans to keep talking to holders of its remaining 6%, 8.625% 2022 notes who collectively hold an aggregate principal amount of $104.9 million, it said in an exchange filing. The company issued $453 million of new notes on Jan. 20 in exchange for $477 million of its notes.

China Builder Agile to Sell $291 Million JV Stake to State Firm (8:15 a.m. HK)

Agile Group will sell its 26.7% stake in Guangzhou Lihe Real Estate Development, a property joint venture, for 1.84 billion yuan, it said in a Hong Kong stock exchange filing. Purchaser is Guangdong Zhonghai Property, an indirect wholly-owned unit of China Overseas Land & Investment.

Agile expects to make a gain of around 698.7 million yuan from the sale and plans to use the net proceeds for general working capital and future business development.

Vanke Overseas to Raise Net 56 Million Pounds From London Property Sale (7:07 a.m. HK)

An indirect subsidiary of Vanke Overseas entered into an agreement to sell a property in London to M&G TS Ryder, according to a Hong Kong stock exchange filing.

The property is Ryder Court located at 13-17 Bury Street and 12, 14, 16 Ryder Street in London.

Evergrande Appoints Cinda’s Liang as Non-Executive Director (Sunday, 7:25 p.m. HK)

China Evergrande Group has appointed the chairman of China Cinda (HK) Holdings Co. as a non-executive director, the property developer said in a filing to the Hong Kong stock exchange. Liang Senlin has been chairman of China Cinda (HK) since May 2019.

China Property Recovery Could Optimistically Take a Year: CCB (6:05 p.m. HK)

A recovery in China’s property sector could take six to 12 months on an optimistic basis if a potential easing of escrow rules occurs, said CCB International. “Homebuyer sentiment has been impaired” due to worries about developers fulfilling deals, property taxes and falling home prices, analysts including Lung Siufung wrote in a note dated Thursday.

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