Shimao looks to sell US$12b in assets: report

[BEIJING] Chinese real estate firm Shimao Group is looking to sell around US$12 billion in assets, according to Chinese news outlet Caixin, as the developer seeks to raise funds to combat its liquidity problems.

China's property firms have struggled in the wake of Beijing's drive in recent years to curb excessive debt in the real estate sector as well as rampant consumer speculation, putting massive pressure on the wider economy.

Among the most prominent developers facing a liquidity crisis is Evergrande, which has been teetering on the brink for months because of its trouble in servicing a debt pile topping US$300 billion.

Developer Shimao Group is now looking to offload 34 projects in 17 cities including Beijing, Shanghai and Hangzhou, Caixin reported on Tuesday.

The assets span residential, office, commercial and hotel projects, the report said, citing documents.

Fifteen of the projects were valued by Shimao at 42.2 billion yuan (S$8.93 billion), while 19 others were either partly-owned by the firm or in early stages, involving an investment of 32.5 billion yuan.

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Shimao's shares soared more than seven per cent in Hong Kong on Tuesday.

The news comes after Evergrande's shares rallied on Monday in reaction to the appointment of a state firm official to its board.

Embattled property firms including Agile Group and Shimao Group have in recent days announced sales of stakes in companies to state-owned enterprises.

AFP