China's Shimao says it has no deal to sell Shanghai plaza, shares slump
[HONG KONG] Shares of Chinese property developer Shimao Group Holdings fell 5 per cent in early Asian trading on Tuesday after it denied a media report that it has entered into a preliminary agreement to sell a Shanghai plaza.
Shimao said in a filing, however, it is in talks with some potential buyers and may consider disposing off some properties in order to reduce its indebtedness.
The Shanghai-based developer said it defaulted a trust loan last week after missing a 645 million yuan (S$137 million) payment that it guaranteed.
Caixin reported over the weekend that Shimao had struck a preliminary deal with a state-owned company to sell its Shimao International Plaza Shanghai, for more than 10 billion yuan.
The report said the firm has put on sale all of its real estate projects, including both residential and commercial properties, and it is also in talks with China Vanke to dispose some assets.
In the filing, Shimao said it has no outstanding asset-backed securities (ABS) due and payable as of Tuesday.
A NEWSLETTER FOR YOU
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
Reuters reported last week Shimao Group's unit Shanghai Shimao Construction has proposed extensions on maturities for two ABS due this month totaling 1.17 billion yuan.
As of 0156 GMT, shares of Shimao dropped 3.6 per cent, after gaining 19 per cent in the previous session.
Rating agencies S&P and Moody's cut Shimao's credit rating again on Monday after the firm unexpectedly defaulted on a trust loan last week.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
Hybrid, flexible working set to curb Singapore office usage and rents
Australia home prices sustain growth in April, CoreLogic says
New York City’s rent-stabilised tenants face third year of price hikes
New Zealand house prices dip for first time in 8 months
Blackstone in talks to buy Dulwich schools in Singapore, Seoul for US$600 million
Strained Chinese cities struggle to pay home-buying subsidies