Chinese real estate company Shimao Group Holdings on Friday announced the sale of its unit to a state-owned entity in order to reduce its debt.
Shimao’s unit, Shanghai Shiying Investment Management Company, sold its entire stake in Shanghai Shimao Real Estate Development to property developer Shanghai Jiushi North Bund Construction and Development Co for 1.06 billion yuan ($167.26 million).
The deal comes as Chinese developers, including Evergrande and Kaisa Group, grapple with liquidity crunches amid tighter regulations.
The company, in a statement to the exchange, said the terms of the disposal agreement were “fair and reasonable” and on normal commercial terms.
Source: Reuters.com