Shanghai's Greenland Group has become one of the world's largest property developers, with nearly $6 billion in North American projects proposed or under construction. Major contractors such as San Francisco-based Webcor Builders are now at work on sites developed by Greenland Group and its partners. The projects include the $1.4-billion Metropolis project in Los Angeles and the $5-billion Atlantic Yards project in New York City. On the latter project, Greenland is partners with a big U.S. developer, Forest City.
There is no sign that any Greenland project has financial trouble, yet a mounting company debt load equal to 70% of the developer's overall capitalization is a focus for analysts watching Greenland's risk profile. Debt-rating firm Moody's says Greenland's 70% to 75% debt leverage and near-term earnings-interest ratio has produced a tight margin for the company to meet analyst expectations—and any variance could result in a lower credit rating and higher borrowing costs.