Hong-Kong-based private equity firm Gaw Capital Partners has obtained a last minute 18-month extension on a property-backed loan originally due on Monday, according to a report by Bloomberg citing people familiar with the matter.
The facility in question is backed by a life science park in Shanghai, with the possibility for another 18-month extension if certain conditions are met. The wait for regulatory approval means it will initially be a one year reprieve. The loan amount was slightly reduced under the terms, from $110m to $108m.
The deal illustrates the challenges facing PE-backed property portfolios in China’s struggling real estate market. A Gaw-managed fund also recently missed a payment on a $260m loan tied to a Shanghai office tower.
