Hong Kong’s Stressed Developers Lure Private Credit as Funding Gap Looms
- High interest, falling prices, banks’ reluctance draw lenders
- HK real estate stress flares up amid China property crisis
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Private credit lenders are circling distressed property developers in Hong Kong, with a record $23.4 billion of bank loans coming due next year for the downtrodden sector.
The potential funding gap is drawing a range of players — including family offices, private equity firms and asset managers, such as PACM Group Holdings Ltd. — who can stomach offering high-risk, high-yield loans for collateral in one of the world’s most expensive property markets.