2024-04-29 28Hse Editor
Then there are the owners of Chinese real estate companies selling their assets in Hong Kong. Bloomberg reported that Shimao Group (0813) Chairman Xu Rongmao and his daughter Xu Weiwei are selling the family-owned two-story office building in the Central Center for 1.5 billion yuan. Some properties were mortgaged to DBS Bank Hong Kong branch. ◆reporter Yan Lunle
Shimao's cash flow has been tight recently. At least 4.73 billion yuan (RMB, the same below) domestic bonds and asset-backed securities (ABS) and US$500 million of overseas bonds are facing maturity or sell-back this month. The three ABS deferred payments due on the 26th, 27th and 28th of March, with a total amount of about 1.4 billion yuan. Shimao held a meeting of holders yesterday to consider two ABS extension proposals totaling 1.165 billion yuan. Reuters pointed out that the meeting passed the "Pingyu 5 Excellent" 450 million yuan ABS extension motion, which will pay the corresponding income and not less than 30% on January 18, June 20, September 19 and December 19. 50%, 70% and 100% of principal. Shimao stated that it will strictly implement the extension plan, and the extension plan will not have a material adverse impact on the company's production and operation, financial status and solvency, nor will it have a material adverse impact on the legitimate rights and interests of investors.
Shimao's stock price fell 76% in one year
The house leaked and it rained overnight. Recently, Shimao was downgraded by international rating agencies Standard & Poor's and Moody's at the same time. Standard & Poor's even claimed that the company's liquidity has further deteriorated. The company's stock price fell 3.01% yesterday to HK$4.83, down about 76% in the past year. In the face of funding problems, foreign sources quoted sales data and land records as saying that the two-storey office building in the Central Center held by the Xu Rongmao family is being sold to potential buyers for about 1.5 billion yuan. The directors of the holding company are Xu Rongmao and his daughter Xu Weiwei.
The Central Center was originally owned by Cheung Kong Properties. Cheung Kong sold 75% of the ownership of the Central Center for 40.2 billion yuan in November 2017. The main floors are located on the 19th to 78th floors, involving a total of 47 floors, together with 402 parking spaces and advertisements on the top floor. The total floor area is about 1.22 million square feet, and the price per square foot is about 33,000 yuan. It is understood that the initial buyer was China Hong Kong, Macao and Taiwan Overseas Chinese Peaceful Development Asia Real Estate Co., Ltd. China State Reserve Energy and Chemical Group held 55% of the equity at that time, while the remaining 45% was formed by a combination of local investors.
However, in 2018, the company's shareholding changed. Shimao Group Chairman Xu Rongmao and Kingston Group Zhu Tai each purchased 20% of the property rights from China National Reserve Energy and Chemical Group, accounting for 40% in total. At a transaction price of 40.2 billion yuan, a total of Involving about 16 billion yuan. It is understood that the Xu Wingmao family was allocated a total of 9 floors of properties at that time, but it was reported that in October last year, Xu Wingmao had mortgaged about 3 floors of the Central Center property to DBS Bank Hong Kong Branch to obtain a loan of 1.405 billion yuan.
Shimao sold Hong Kong assets to repay debts
It has been pointed out that Shimao Group has recently admitted that it is working with a number ofPotential buyers have discussed negotiating the sale of certain properties, and will consider selling some assets under suitable conditions to reduce liabilities. It is rumored that both State-owned Assets and Vanke (2202) have participated in the negotiation. Against the backdrop of the sluggish mainland property market, Shimao's performance in 2021 announced earlier was also poor, with cumulative contracted sales of approximately RMB 269.11 billion, down 10.39%. It is reported that Shimao's contracted sales last month only recorded 11.22 billion yuan, down 70.08% year-on-year.
This time, Shimao will resell its assets in Hong Kong in the short term. In December last year, Shimao Group announced the sale of its 22.5% stake in the Southwest Kowloon Victoria Harbour Project to Wheelock, Sino Land (0083) and Java Holdings (0251), together with a sales loan of 2.86 billion yuan, at a price of 2.086 billion yuan. The transaction brought a loss of 770 million yuan, and the project company will no longer be held after completion. Shimao stated at the time that the funds obtained from the sale of the project would be used for business development, debt repayment and general corporate purposes.
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