Chinese Estates Holdings Ltd said it would book an aggregate loss of HKUS$1.36 billion (US$174.2 million) in the current fiscal year from sale of all its bonds issued by peer Kaisa Group Holdings Ltd.
The Hong Kong-based property developer and investor sold an aggregate amount of US$255 million worth of bonds issued by Kaisa for US$88.32 million including accrued interest from Oct. 19 through 28 over the counter, it said in a filing to the Hong Kong bourse late on Thursday.
In its latest sale, Chinese Estates sold an aggregate amount of US$100 million in bonds issued by Kaisa for US$31.11 million including accrued interest between Oct. 26 and 28 over the counter.
The notes included 9.375per cent Senior Notes due 2024 with a US$10 million principal, 10.875per cent Senior Perpetual Capital Securities with a US$23 million principal and 11.7per cent Senior Notes due 2025 with a US$67 million principal.
Chinese Estates said it will use the proceeds for general working capital and reinvestment.
The developer has already said it would book a loss in its current fiscal year from the sale of some bonds issued by Kaisa.
Chinese Estates, a former major shareholder of indebted developer China Evergrande Group, previously said it had significant investment in Kaisa, whose shares have fallen over the past few months due to wider liquidity concerns about China's real estate sector.
Being Hong Kong-focused, Chinese Estates' stock has been relatively steady versus peers who also have a focus on property leasing overseas.
(US$1 = 7.7776 Hong Kong dollars)
(Reporting by Donny Kwok; Editing by Christopher Cushing)