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Chinese developer Shimao puts all property projects on sale - Caixin - Metro US

Chinese developer Shimao puts all property projects on sale – Caixin

FILE PHOTO: Man walks past a wall carrying the logo of Shimao Group, with residential buildings and the financial district of Pudong seen in the background, in Shanghai

SHANGHAI (Reuters) – Shimao Group Holdings has put on sale all of its real estate projects, including both residential and commercial properties, as the cash-strapped Chinese property developer accelerates asset disposals, Caixin reported.

Shimao, which defaulted on a trust loan last week, has asked agents since late December to help seek buyers for its properties, Caixin reported over the weekend.

The company didn’t immediately respond to a request for comment.

Shimao Group is largely focused on residential property development, with Shanghai Shimao Construction being its main China business platform. Shanghai Shimao Co Ltd, controlled by Shimao Group, mainly develops commercial properties.

Shimao has struck a preliminary deal with a Chinese state-owned company to sell its Shimao International Plaza Shanghai, a commercial property on Shanghai’s Nanjing Road, for more than 10 billion yuan, Caixin reported.

The property developer said last week that it has defaulted on a trust loan payment, while its unit Shanghai Shimao Construction has proposed extensions on maturities for two asset-backed securities (ABS) due this month.

Shimao has 34.2 billion yuan worth of outstanding ABS, as well as $5.72 billion worth of dollar bonds, according to Caixin.

(Reporting by Samuel Shen and Clare Jim; Editing by Shri Navaratnam)

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