Shimao says it’s in talks for property sales to help with debt problems
A couple walks past Shimao Tower in Shanghai on Saturday, January 8, 2022. It was built by Shimao Group Holdings Ltd.
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BEIJING — Chinese real estate developer Shimao Group HoldingsReports of default and the sale of prime real estate have prompted Tuesday’s delay.
Shimao, one of China’s more healthy developers. The company’s Hong Kong-listed stock and bond listings as well as those listed on the mainland both have fallen in the past few months due to warnings that there was a shortage in sales. It is now the volatility comes amid broader concerns about the Chinese real estate industry’s abilityHigh amounts of debt can be paid off.
The first official response of the Shimao Group, a Hong Kong listed company, to media coverage about its property projects being sold was made in a Tuesday filing.
“Certain media reports allege that the Group is not meeting its financial obligations as a result of a fund.” Shimao said in the filing.However, the company claimed that it was not involved directly in repayment but was guarantors.
Chinese financial news website will be live this weekend Caixin reported that Shimao put all its properties up for sale,This deal included an initial 10 billion yuan ($1.57billion) agreement with a state-owned firm to purchase Shimao International Plaza downtown Shanghai.
This was in response to Reuters’ Friday report Shimao failed to make full repayment on a trust loan,Sending the company in default.
Shimao claimed that “the Company has not entered into any preliminary agreements in relation to Shanghai Shimao international Plaza disposal.” Shimao also stated that the company is in discussions with prospective buyers and may sell properties to “reduce the Group’s debt.”
The filing stated that the Company had no unpaid asset-backed securities as of the date of this statement.
Shimao shares closed slightly higher on Tuesday morning. surging by just over 19% on Monday.