Shimao Group Holdings places all real estate projects on sale to raise cash

In a report Caixin said, China’s Shimao Group Holdings has put on sale all of its real estate projects, including residential and commercial properties.

The development marks the Chinese property developer accelerating asset disposals following cash shortages.

Shimao, which defaulted on a trust loan last week, has asked agents to help seek buyers for its properties.

Shimao Group didn’t immediately respond to requests for comments.

The Chinese real estate group is largely focused on developing residential properties with Shanghai Shimao Construction being its main China business platform.

Shanghai Shimao Co Ltd, controlled by Shimao Group, mainly develops commercial properties.

According to Caixin’s report, Shimao has entered into 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.

Last week, Shimao had defaulted on a trust loan payment, with one of its unit Shanghai Shimao Construction proposing extensions on maturities for two asset-backed securities (ABS) due for this month.

According to Caixin’s report, Shimao has 34.2 billion yuan worth of outstanding asset-backed securities as well as dollar bonds worth $5.72 billion.

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