Core Viewpoint - The auction of 120 residential units and over 200 underground parking spaces at Sanquan Apartment in Beijing failed due to lack of bids, highlighting the financial struggles of Jingrui Holdings, which is attempting to resolve a debt of approximately 720 million yuan through asset liquidation [2][6][8]. Group 1: Asset Sale Details - The Sanquan Apartment project covers an area of 10,000 square meters with a total construction area of 54,000 square meters, consisting of three high-rise residential buildings and one commercial podium [4]. - The 120 residential units for sale have a total area of 13,824.7 square meters, with most units being two-bedroom apartments ranging from 110 to 130 square meters [4][5]. - The starting price for the residential units is approximately 58,000 yuan per square meter, while the commercial space was sold for 61.5 million yuan, equating to about 15,000 yuan per square meter [4][6]. Group 2: Financial Context - Jingrui Holdings is unable to repay its debt of 720 million yuan to Everbright Jinou, which has led to the auction of the Sanquan Apartment assets as collateral [2][5][8]. - The company had previously acquired the Sanquan Apartment assets for a total of 1.27 billion yuan, with the initial purchase price for the 120 units being 630 million yuan, indicating a potential appreciation in value despite current financial difficulties [7][10]. - The rental yield for the Sanquan Apartment is reported at 2% for residential units and 5.5% for commercial spaces, with rental prices for two-bedroom apartments ranging from 17,000 to 20,000 yuan per month [7][9]. Group 3: Industry Trends - The sale of mature assets in first-tier cities has become a strategy for real estate companies to alleviate debt amidst a gradually stabilizing real estate market [3]. - Jingrui Holdings has been transitioning from a traditional developer to an asset management service provider since 2017, focusing on rental business expansion [10][11]. - The company has faced significant pressure on financing and debt repayment due to a debt default in 2022, leading to a strategic plan aimed at reducing leverage and liabilities through asset sales [11].
豪华公寓也流拍