SUNAC(01918): The Great Wall Risk Asset Revitalization Investment Center plans to invest no more than 2.476 billion yuan to restructure the existing debt of the Chongqing Bay project and provide additional financing to revitalize the project.

SUNAC (01918) announced that the Chongqing Bay project is a project developed in cooperation with a partner. Prior to the completion of the transaction, SUNAC, Sunac One Hundred and Nanning Guoyi respectively held 70%, 20% and 10% equity in the project company. CITIC Trust and CITIC FAMC are the main creditors of the project company's existing debt. In order to solve the repayment of the existing debt of the Chongqing Bay project and meet the funding requirements for future development and construction, SUNAC introduced Changcheng Risk Asset Revitalization Investment Center as an investor. Changcheng Risk Asset Revitalization Investment Center plans to invest no more than RMB 2.476 billion to restructure the existing debt of the Chongqing Bay project and provide new financing to revitalize the project. On January 23, 2025, SUNAC signed limited partnership agreements with Changcheng Investment Fund, Changcheng Risk Asset Revitalization Investment Center, CITIC Trust, CITIC FAMC and Sunac One Hundred Real Estate, etc. According to this, (1) Changcheng Risk Asset Revitalization Investment Center intends to contribute cash not exceeding RMB 2.476 billion as a priority limited partner to the limited partnership enterprise, of which, in principle not more than RMB 1.326 billion will mainly be used for the development and construction of the Chongqing Bay project and possible funding requirements for issues that may affect the development of the Chongqing Bay project, and not less than RMB 1.15 billion (the actual amount to be determined by Changcheng Risk Asset Revitalization Investment Center) will be used to purchase the intermediate limited partnership interests held by CITIC Trust; (2) CITIC Trust subscribes to intermediate limited partnership interests of the project company valued at approximately RMB 3.174 billion for the debt of the project company managed by CITIC Trust; (3) CITIC FAMC subscribes to subordinate limited partnership interests for the debt of the project company; (4) Sunac One Hundred Real Estate subscribes to subordinate limited partnership interests for the debt of the project company or cash contributions; and (5) SUNAC subscribes to subordinate limited partnership interests for the debt of the project company and holds a portion of the equity of the project company. The Chongqing Bay project is located in the core area where the two rivers intersect in Chongqing, China, mainly including residential and commercial areas, with a total undeveloped land area of approximately 1 million square meters. The transaction restructures the existing debt of the Chongqing Bay project, solves the project's related debt issues, enhances the project value, provides the necessary funds for the project's future development and construction, and revitalizes SUNAC's high-quality projects.