Cedar Real Estate Trust Transfer Non-self-financing 8 billion Overdue Principal and Interest Payment in Progress

category:Finance
 Cedar Real Estate Trust Transfer Non-self-financing 8 billion Overdue Principal and Interest Payment in Progress


It is worth noting that in recent years, the project of Zhongjiang Trust (the predecessor of Cedar Trust) has frequently encountered wind control problems, leaving about 8 billion yuan of overdue project principal and interest burden to the new owner Cedar Holdings, while only four months are left before the cedar Holdings promises are paid. Asked about the financial pressures faced by Cedar Holdings, Zhang Jin responded to the reporters of Securities Daily that the issue of overdue projects has been fully taken into account in the consideration of the equity purchase of Zhongjiang Trust, and the bad disposal funds have been included in the consideration.

Cedar has strong local brand advantages

Project transferee borrow name to sell house

Recently, Cedar Trust released a new product Xinkun 5 - Guangdong, Hong Kong and Macao Dawan District Equity Investment Collective Fund Trust Plan which attracted the attention of the industry. Relevant data show that the fund-raising scale of the trust plan is estimated to be 3.5 billion yuan, with a duration of 2.5 years. The specific purpose of the fund is to transfer 30% equity of Zhongshan Huidefeng Real Estate Investment Co., Ltd. (Project Co.) for 0.6 billion yuan, and 3.44 billion yuan for additional investment, project development and construction of Zhongshan Huidefeng and return the investment of former shareholder Zhongshan Shengzhen.

The biggest doubts about the project are that the site of the project is called Cedar Junhua - Tianhui, which is taken from Junhua Real Estate under Cedar Holdings. As far as the name of the property is concerned, there are voices in the market that the property is highly related to Cedar Holdings, suspicious of self-financing.

On September 6, Zhang Jin responded directly to the queries. Zhongshans Lanxi Valley project was transferred last year because of the consideration of collecting funds. Zhang Jin told Securities Daily that cedar is a very good sales champion in Zhongshan City for several years. It has strong brand advantage. After the transfer of the project, the transferee requests cedar to export the brand. This is a common practice in the real estate industry. It is also the current Lanxi Valley project that uses Cedar Junhua-Tianhui. The reason for the name.

It is reported that the intention of Cedar Trust is that Cedar Holdings is well aware of such projects, will have higher control over underlying assets, investorsrights and interests are more secure, is a win-win product design. Cedar Holdings as a service provider to assist Cedar Trust projects, but also Cedar Trust industry chain financial characteristics. Zhang Jin said.

Reporters learned that Cedar Trust will rely on the advantages of the Group, will supply chain finance and industrial chain finance as the main direction of development.

On August 23, Cedar Trust Xinchain 1 was officially established. The first active management trust product after Cedar Trust renamed is the supply chain financial project.

Compared with traditional financial institutions such as banks, Cedar Holdings, as the leader of domestic commodity supply chain and the core enterprise in the industrial chain, has obvious advantages in supply chain finance. Supply Chain Finance and Industry Chain Finance are the main driving force of Cedar Trust, which is also the area with the most ability and grasp to do wind control. Zhang Jin said that supply chain finance is still in its infancy in China, which is also the opportunity of Cedar Trust.

Faced with the Pressure of 8 billion RMB Funds Payment

Cedar said enough funds have been reserved

Up to now, Cedar Holdings has acquired Zhongjiang Trust for more than five months. On April 21, this year, Zhongjiang Trust disclosed that, with the approval of the Banking Insurance Regulatory Commission and the support of the competent authorities and local governments, Zhongjiang Trust held a temporary shareholdersmeeting recently. It considered and passed the Bill on Amending the Constitution of Zhongjiang Trust Company. Cedar Holdings, which holds 71.3005% of the shares of Zhongjiang Trust, became Zhongjiang Trust. Jiang Trusts new controlling shareholder. On June 25, the name was officially changed to Cedar International Trust Co., Ltd. and Zhongjiang Trust withdrew from the historical stage.

On April 22, Cedar Holdings made a commitment to investors to ensure payment of the full principal and interest of overdue projects by January 22 next year. According to previous data, the principal and interest of overdue projects exceeded 7 billion yuan. However, Cedar Trust is facing increasing pressure to deliver overdue projects. In fact, its not 7 billion yuan, its about 8 billion yuan, said Zhang Jin.

Does the payment of nearly 8 billion yuan put financial pressure on Cedar Holdings? Zhang Jin made a clear response in reply to the reporters question in the Securities Daily: In the pricing mechanism of the purchase of Zhongjiang Trust, the transaction consideration already contains the bad disposal funds. If the bad money triggers the reduction of the net assets of Cedar Trust, the equity consideration will be deducted accordingly. Bad disposal is a part of the whole Zhongjiang Trust acquisition, and enough funds have been reserved to deal with this part of the bad disposal. The whole is not beyond our budget.

In addition, Zhang Jin also disclosed the progress of related work. The report will come out in the next two days to straighten out the situation in Zhongjiang. The next step is to straighten out the problems of operation. We should say that we have found some ideas and paths for the development of Cedar Trust. The situation is basically clear. We can guarantee the full payment of the bad money before it is promised. Zhang Jin stressed.

Source: Liable Editor of Securities Daily: Yang Qian_NF4425