(Yicai) Dec. 3 -- A growing number of long-abandoned big real estate projects are being resuscitated in China as debt restructurings and new capital injections unlock development.

China Great Wall Asset Management has invested nearly CNY2.5 billion (USD350.5 million) in the stalled Chongqing Bay project, the Beijing-based company announced recently, noting that its real estate subsidiary will take over the project.

Located in the city’s core district, the project is a mixed-use development of homes, offices, and shops. Construction began in 2003 but was halted after its two successive developers defaulted and failed to complete the work, leading to a complete stoppage in early 2022.

Another previously mothballed project is the World’s No. 1 Shuisi Mansion project in Guizhou province, which was converted into a luxury hotel that opened for business in May. Meanwhile, preparations to restart the Shengang International Center project in Shenzhen are in hand.

The central and local governments are rolling out policies, including for bailout funds and tax incentives, to help the new developers of idled projects, said Yan Yuejin, vice president of E-House China Research Institute, a Shanghai-based real estate think tank. Financial support from both private and state investors has enabled many projects to resume construction, Yan said.

Big project restarts need to overcome three major hurdles -- the funding gap, legal disputes, and the restoration of market confidence -- while also attracting suitable investors, Yan noted.

The revival of unfinished urban landmark projects reflects a shift in how real estate sector risk is being handled, according to Liu Shui, director of enterprise research at the China Index Academy, another property market think tank.

Rather than simply bailing out or liquidating failed projects, the authorities and investors now evaluate each project’s actual status, isolate the risks, and coordinate stakeholders’ interests to achieve a “soft landing,” Liu said.

Financial and asset managers are playing an increasingly important role in this process. They can set up bailouts, give restructuring advice, and create risk disposal trusts and specific asset revenue rights trusts, Li pointed out. After taking over a long-abandoned project and isolating the risks, they can then can bring in a reputable builder to develop and run the project, he added.

Editors: Tang Shihua, Futura Costaglione