CSI Properties Ltd. said its HK$3.85 billion relevant advance loan to Southwater Group, a consortium of the Hong Kong-listed developer and Wing Tai Properties Ltd., has grown by about HK$875 million to approximately HK$4.73 billion.
The increase was due to a several guarantee given by CSI Properties to the banks, which provided the term loan facilities granted to Southwater.
Proceeds from the advance loan, which was secured March 23, will be channeled toward refinancing the consortium's current bank loans and to finance/refinance building costs of its 5,330-square-meter Peel Street/Graham Street development in Hong Kong.
Additionally, the remaining HK$2.31 billion balance of the relevant advance will be attributed to a shareholder loan, which CSI Properties will provide to the consortium.
The consortium was formed as a partnership between the two companies, which clinched a HK$15 billion development contract for a commercial site in Hong Kong's Central district in October 2017. CSI Properties holds a 35% stake in the project, while Wing Tai holds the remaining 65%.
The 2,685-square-meter site will form a portion of the larger Peel Street/Graham Street project.
