China's Shimao says it has no deal to sell Shanghai plaza, shares slump (updated)

Shimao Services Holdings

11/01/2022 02:22

(Adds details, changes slug for media clients)
    HONG KONG, Jan 11 (Reuters) - Shares of Chinese property
developer Shimao Group Holdings  0813.HK  fell 5% 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.  urn:newsml:reuters.com:*:nFWN2TQ1SW
    The Shanghai-based developer said it defaulted a trust loan
last week after missing a 645 million yuan ($101.10 million)
payment that it guaranteed.  urn:newsml:reuters.com:*:nL1N2TN03H
    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.
 urn:newsml:reuters.com:*:nL1N2TQ00Y
    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  2202.HK 
 000002.SZ  to dispose some assets. 
    In the filing, Shimao said it has no outstanding
asset-backed securities (ABS) due and payable as of Tuesday.
    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.  urn:newsml:reuters.com:*:nL1N2TN03H
    As of 0156 GMT, shares of Shimao dropped 3.6%, after gaining
19% 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.

($1 = 6.3715 Chinese yuan renminbi)

 (Reporting by Clare Jim; Editing by Muralikumar Anantharaman &
Shri Navaratnam)
 ((clare.jim@thomsonreuters.com; +852 2912 6653; Reuters
Messaging: clare.jim.thomsonreuters.com@reuters.net))