Hotel builder SPG Land asks to relax bond terms

SPG Land Holdings Ltd, the builder of the Peninsula Shanghai hotel on the Bund, is asking bondholders to relax restrictions that limit its asset sales as the central government keeps a tight rein on real estate speculation.

The builder of the 235-room hotel wants to amend the terms of its $200 million 13.5 percent bond due in April 2016 to help it sell undeveloped or incomplete projects, according to a statement to the Hong Kong Stock Exchange last week. SPG Land is seeking the changes to bolster its finances in case of changing market conditions, it said.

Its request to bondholders reflects increased pressure on developers' finance. Greentown China Holdings Ltd, whose dollar-denominated bonds mature in November 2013, sold a stake to raise funds, and Shanghai Zendai Property Ltd disposed of mainland assets to help repay $150 million of debt.