Sunac China Holdings Ltd. (1918), the developer part-owned by Bain Capital LLC, said sales may exceed 20 billion yuan ($3.3 billion) next year as it sells more luxury homes to wealthy Chinese buyers.
Tianjin-based Sunac’s cash will rise to 6 billion yuan after the company expects to reach this year’s 18.3 billion yuan sales target in November, Chairman Sun Hongbin said. The company aims to use 2 billion yuan to 3 billion yuan of the money to boost its land holdings as prices slow, he said.
Sunac is expanding as demand for luxury housing shows resilience even as the government intensifies efforts to curb home prices, Sun said. Housing prices gained in fewer than half of the 70 cities monitored by the statistics bureau in September for a second month as sales eased after limits on home purchases in some cities were imposed and mortgage rates increased.
“People cherish their opportunities to buy even more because of the home-purchase restrictions,” Sun told reporters in Beijing on Oct. 17. “That’s very lucky for companies developing high-end properties like us.”
Sunac focuses on high-end properties in Beijing, Tianjin, Chongqing, Wuxi, Suzhou and Yixing. New-home prices in four of the six cities Sunac operates in, including Beijing and Chongqing, either fell or were unchanged from August, according to the statistics bureau data on Oct. 18. Sunac’s net income rose 67 percent in the first half from a year earlier to 318.7 million yuan after sales of properties jumped 64 percent, according to the company’s financial statement.
