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Chinese developer Shimao puts all property projects on sale

by Mike Robinson

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© Reuters. FILE PHOTO – A man passes a Shimao Group logo on a wall in Shanghai. In the background are residential buildings and Pudong’s financial district. This was taken in Shanghai, China, January 1, 2013. Photo taken January 1, 2013 REUTERS/Stringer

SHANGHAI (Reuters). Shimao Group Holdings sold all of its real property projects in China, commercial as well as residential properties. This was done to accelerate asset disposals by the cash-strapped Chinese property developers, Caixin reported.

Shimao has been asking agents to find buyers since December, after it defaulted last week on its trust loan, Caixin reported.

However, the company did not respond immediately to our request for comment.

Shimao Group’s main China business is Shanghai Shimao Construction. This group is heavily focused on residential development. Shanghai Shimao Co Ltd is a Shimao Group company that primarily develops commercial properties.

Caixin reports that Shimao reached a preliminary agreement with a Chinese state-owned firm to sell the Shimao International Plaza Shanghai commercial property located on Shanghai’s Nanjing Road for over 10 billion Yuan.

According to the property developer, it declared last week that its trust loan payments were not paid. Meanwhile, Shanghai Shimao Construction proposes extensions for maturities of two ABS (asset-backed securities), due in this month.

According to Caixin, Shimao currently has ABS worth 34.2 billion Yuan and $5.72 billion in dollar bonds.

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