Chinese developer Sunac sells stake in Harbin Ice and Snow World Park for US$138 million

Sunac’s wholly-owned subsidiary, Harbin Sunac Culture & Tourism Industry, sold its 46.7 per cent equity interest in the theme park operator to Harbin Sun Island Group, which previously owned a 52.8 per cent stake in the target firm, the Beijing-based property developer said in a stock exchange filing late on Friday.

The Sunac unit will allocate 202.6 million yuan from the proceeds of the sale to repay Snow World, according to the filing. An additional 404 million yuan will be used to settle the pledged loan tied to its equity interest in that company.

The remaining 404.6 million yuan will be deposited into a government-regulated special account to “guarantee the delivery of properties in [Sunac’s] property development projects in Harbin”, the filing said.

The three red lines define thresholds on borrowings, which were outlined by the central government in August 2020. Home prices across the country have now fallen by 30 per cent, compared to their peak three years ago.