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Property sales at Shimao Group’s Shanghai-listed unit sink 62 per cent in February
- Shanghai Shimao reported contracted sales of US$158.4 million last month
- Moody’s downgrades Logan Group’s credit rating on concerns over the developer’s liquidity and access to funding
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Chinese developer Shimao Group Holdings said property sales at its mainland-listed subsidiary slumped last month, piling further financial pressure on one of the country’s top real estate companies.
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Contracted sales at Shanghai Shimao sank 62 per cent to 1 billion yuan (US$158.4 million) in February from a year earlier, according to a filing to the Shanghai Stock Exchange on Tuesday.
Shimao, founded by Hui Wing Mau, also known as Xu Rongmao, in 1989, was regarded as a sound and restrained developer until it fell victim to Beijing’s draconian tightening measures to curb the real estate industry in late 2021.
It faces 20 billion yuan of payments this year from onshore and offshore notes, according to Fitch Ratings. The company also faces debt obligations such as trust financing and around 10 billion yuan of asset-backed securities, of which 5.6 billion yuan is due this year.
China’s biggest property developers have been struggling to sell homes, as a resurgent Covid-19 pandemic combined with a slowing economy deter big-ticket investments.
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