(Bloomberg) -- Chinese developer Hopson Development Holdings Ltd. has received a maturity extension of a loan from 2023 that backed the purchase of some commercial real estate space in a Hong Kong office building, according to people familiar with the matter.
Seatown Holdings Pte Ltd., a subsidiary of Singaporean sovereign fund Temasek Holdings Pte Ltd., has extended around $100 million to $115 million of a $165 million loan for Hopson. The developer had paid down a portion of the facility, originally due in May, to obtain a lower interest rate, the people added.
The borrowing, extended for another four months, will now mature in September, said the people, who requested anonymity to speak on private matters. Proceeds of the original facility were used to fund Hopson’s acquisition of two floors and four parking lot spaces at The Center, located in Hong Kong’s central business district.
Seatown declined to comment, saying that it doesn’t speak on specific transactions or speculation. Hopson Development didn’t respond to an emailed request for comment.
Hopson’s loan extension underscores its position as one of the few major Chinese developers that hasn’t defaulted. Its stands in contrast to peers such as Country Garden Holdings Co., which defaulted last year after remaining solvent for the better part of China’s real estate meltdown.
Standard & Poor’s earlier this month rated the developer a “B”, expecting it to manage its refinancing needs over the next 12 months, with good quality assets in first-tier cities in China.
Bank loans made up 85% of the company’s reported debt as of Dec. 31, 2023. After Hopson repaid $300 million in offshore bonds in May 2024, the company had no unsecured capital market bonds outstanding, according to S&P.
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