Clicky

Brickell Property Caught In Chinese Debt Squeeze

China City Construction’s Brickell property could remain an open pit for a bit longer as the company deals with liquidity issues and a lawsuit.

The Brickell property is 55% owned by China City Construction (International) Company Ltd of Hong Kong, which itself is a subsidiary of mainland China based China City Construction Holding Group, a state-owned company.

In 2016, the Hong Kong company defaulted on bonds, triggered by the mainland parent company switching to a private ownership structure.

The mainland company has since reverted back to state ownership, but is now itself facing severe liquidity issues in a domino effect.

As part of a proposed restructuring, China City announced last month that its stake in the Brickell property could be transferred to creditors.

China City is also facing a lawsuit in Hong Kong over a 2015 sale of a stake in the Brickell property. In that sale, a subsidiary of Chun Wo Holdings (now Asia Allied Infrastructure) paid $40.5 million for a 45% share.

As part of the deal, the partners were required to have agreed on an EB5 financing plan by the end of 1Q 2017. The contract requires China City to repurchase the stake after failing to finalize the deal, the lawsuit claims.

Leave a Reply

12 Comments on "Brickell Property Caught In Chinese Debt Squeeze"

Notify of
avatar
Sort by:   newest | oldest | most voted
Anonymous
Anonymous

Anybody want to finance a monster truck rally in “The Pit” We’ll replace the parking lot across the street with grandstands. Bentleys on 60″ tires and $100 bottles of water. Help make Miami the premier monster truck destination of the world.

Anonymous
Anonymous

Why does all other cities have real sidewalks? We always have sidewalks with patches of grass only 1 or 2 people can walk on yet they want this city to be more walk-able. How can you be more walk-able when you don’t even take it serious?

Anonymous
Anonymous

Be for real…the only reason you’ll see people walking in Miami is when they’re trying to get somewhere with air-conditioning.

123fgh
123fgh

The Chinese Finger Trap.

Marc305
Marc305

We knew about the default last year.
Much like the Mexican Embassy lot purchase, this project will not get off the ground this decade. The most likely outcome is that they will flip it to another developer, hopefully one who can design and construct something great.

Anonymous
Anonymous

Melo…!!!!!!hahahaha

Anonymous
Anonymous

This is great news sell it to someone who will finally build on that great piece of land.

Anonymous
Anonymous

Amazing scale if it ever happens.. regardless it’s a nice property and something great will go on it.

Anonymous
Anonymous

Chicoms. Not even once.

SRS
SRS

How disappointing to keep seeing this massive crater. I’m sure somebody will buy it but the problem is no market for anything right now. Definitely no residential demand, enough of the retail at least until BCC shows sign of success, and the office demand is realy not there

Anonymous
Anonymous

Fortunately, you’re wrong.

Marc305
Marc305

No, actually SRS is quite right. Real Estate is about supply and demand, and right now everything is about even. The next wave is years away, so at least for the next 3 years this lot will continue to be a “massive crater.”

wpDiscuz