Financial Street Holdings extends aid to Wuhan real estate project

Financial Street Holdings has announced a significant extension of financial assistance to Wuhan Lianghu Bandao Real Estate Development Company Limited ("Lianghu Bandao Company"), a 50% owned subsidiary, to support the "Financial Street Donghu Center" project. The initial shareholder loan of 2.21 billion yuan, which includes 1.798 billion yuan in principal and 423 million yuan in unpaid interest, was previously set to expire in 2025. This new arrangement increases the total financial assistance to 3.486 billion yuan and extends the term until November 11, 2030.

The additional funding includes outstanding interest of 915 million yuan from November 12, 2022, to November 11, 2025, and a new increase of 350 million yuan to maintain project operations and address outstanding issues. The interest rate on the extended loan will be adjusted from November 12, 2025, to the one-year Loan Prime Rate (LPR) plus 200 basis points. Interest payments will now be prioritized after the full repayment of the principal, including capitalized interest.

The "Financial Street Donghu Center" project faced significant delays and halted construction due to government requirements related to its proximity to the Wuhan Donghu Hotel. Lianghu Bandao Company’s other shareholder, Tibet Huafu Tianzhuo Real Estate Development Co., Ltd., has pledged its 50% equity in Lianghu Bandao Company to Wuhan Real Estate, a wholly-owned subsidiary of Financial Street Holdings, as security for the loan. The board of directors has approved this assistance, which now requires shareholder approval.