Kaisa Group, the second largest defaulted residential real estate firm after Evergrande Group, received a boost to ease its debt burden.
According to sources from China, an off-shore creditor company is interested and wants to invest as much as $2 billion to buy the delayed Kaisa project in Shenzhen.
However, the $2 billion acquisition plan is said to be still in the initial discussion stage.
Another source said the off-shore creditor appointed a financial advisory group, Lazard, to submit an acquisition offer for the delayed Kaisa project.
So far the delayed project is under the supervision of developer advisor CITIC Securities.
For information, Kaisa Group (like Evergande) is involved in the process of restructuring off-shore debt worth $12 billion after being subjected to default status last year.
Kaisa's projects generally involve real estate in highly prolific cities in China, allowing bondholders to reap profits after they are completed.
So the Kaisa situation also indirectly affects China which is still under pressure with the Covid-19 restrictions slowing down its economic activities.
In the meantime, neither Kaisa nor Lazard and CITIC have yet issued any official statement regarding the acquisition.
But what is known is that if the acquisition is successful, Kaisa will be the first Chinese firm to sell its housing projects to a foreign company.
