China’s fourth largest property developer is looking to sell one of its key assets amid fears it’ll miss a major debt repayment and spark market panic of a similar scale to that seen during the Evergrande crash.
The company, Sunac China Holdings, is reportedly in talks with potential buyers to sell its significant stake in the world’s largest indoor ice and snow playground, which is currently being developed in the city of Shenzhen.
Shenzhen Ice and Snow World is expected to open late in 2026 and will cost US$5.5 billion.
The report suggests the sale of equity is still being negotiated and exactly who the buyer is has not been confirmed.
Default looming
The development comes as Sunac approaches a possible default.
The company’s 30-day grace period to make a $29.5 million dollar-bond interest payment ends Wednesday and, according to Bloomberg, failure to pay it could trigger cross-default on other offshore debt.
Sunac has $7.7 billion of dollar notes outstanding.