Unicorn Bay Ltd., the 50/50 joint venture of property developers Logan Property Holdings Co. Ltd. and KWG Property Holding Ltd., secured up to HK$10.58 billion in term loan facilities.
The facilities will be granted to Unicorn Bay (Hong Kong) Investments Ltd., a subsidiary of Unicorn Bay, which won a bid in March 2017 to acquire a nonindustrial site in Ap Lei Chau, Hong Kong, for about HK$16.86 billion, with a view to developing the site into a residential development.
Logan Property said it is providing the guarantee for up to 50% of the repayment obligations of Unicorn Bay (Hong Kong) under the new bank loans.
In order to support and finance project development, Unicorn Bay (Hong Kong) had obtained term loan facilities worth about HK$7.51 billion under a March 2017 agreement with Hang Seng Bank Ltd. Logan Property noted that the company and KWG have provided several guarantees in favor of the security agent for up to 50% of the repayment obligations of Unicorn Bay (Hong Kong) under those existing facilities.
The company added that its board believes the provision of the guarantee on the new loans will help Unicorn Bay (Hong Kong) to obtain the loans to be used for the partial refinancing of the existing debt under the existing facilities and the financing of the project's construction costs.
