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Liquidity stricken Shimao seeks buyers for some 40 projects valued at over US$12 billion

  • The assets include hotels, shopping malls and serviced apartments estimated to be worth 77.1 billion yuan (US$12.1 billion)
  • One of the prized assets on the list is a landmark hotel built in an abandoned quarry in Shanghai valued at 2.25 billion yuan

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Shimao Group Holdings’ finances have come under increasing strain because of Beijing’s measures to rein in the property sector. Photo: Reuters
Struggling mainland Chinese developer Shimao Group Holdings is seeking buyers for nearly 40 projects to shore up liquidity, as 20 billion yuan (US$3.1 billion) of bond repayments loom this year.
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The package of 37 assets includes hotels, shopping malls and serviced apartments estimated to be worth 77.1 billion yuan, according to a document obtained by the Post.

One of the projects on the list includes a landmark luxury hotel built in an abandoned quarry in Shanghai, which carries a price tag of 2.25 billion yuan.

Two sources with knowledge of the asset sales said that Shimao had approached potential buyers including state-owned rivals and financial firms, but the response was lukewarm.

The InterContinental Shanghai Wonderland was developed by Shimao at a cost of 2 billion yuan. Photo: Bloomberg
The InterContinental Shanghai Wonderland was developed by Shimao at a cost of 2 billion yuan. Photo: Bloomberg

“The sale of the quarry hotel could make headlines,” said Yin Ran, an angel and property investor in Shanghai. “Nearly all families in Shanghai would be interested in staying at the hotel for at least a night.”

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