Shares of cash-strapped Shimao Group rose on Monday after the Chinese developer and its chairman sold a Shanghai hotel and a stake in a Hong Kong development, respectively, for a total of $836 million, in their latest efforts to raise funds.
The disposals come after Shimao put up its assets worth 77 billion yuan ($12.11 billion) for sale to raise cash to repay its debts, offloading two other assets in the past two weeks for 3 billion yuan.
The Shanghai-based developer said late on Friday it sold Hyatt on the Bund to state-owned Shanghai Land (Group) Co for 4.5 billion yuan.
Its chairman Hui Wing Mau also sold his 40% stake in a Hong Kong high-end residential development to Hong Kong investors CSI Properties and C C Land Holdings for HK$1.05 billion ($134.68 million), according to separate statements from the buyers late on Friday.
Chinese state-owned property firms are expected to acquire more assets from private developers facing tight liquidity, analysts said, as Beijing steps up efforts to stabilise and tighten control over a crisis-hit sector that accounts for a quarter of its economy.
Financial media outlet Cailianshe reported over the weekend a state-owned healthcare real estate firm in the northeastern province of Shandong may become China Aoyuan Group’s controlling shareholder, and it has completed the preliminary due diligence.
Source: Reuters.com