Following the transfer of Hong Kong property, Shimao Group (00813. HK) is still selling assets.
On January 21, Shimao Group announced that it would transfer its Shanghai Shimao real estate to Shanghai Jiushi North Bund construction and Development Co., Ltd. at the price of 1.06 billion yuan. After the transfer is completed, Shimao Group will no longer have any interest in Shanghai Shimao real estate.
The main asset of Shanghai Shimao real estate is a piece of land located in Huangpu Road, Hongkou District, Shanghai, with a use right area of 4988.5 square meters. The reporter learned that the plot is located next to maoyue Hotel on the Bund of Shanghai. The plot can be used for commercial and office purposes. The plot has not been developed and is temporarily used as a parking lot.
Shimao Group said that Shanghai Shimao real estate has provided Shanghai Jiushi with complete production adjustment information about the land transferred from Hongkou District Real Estate Trading Center, and Shimao Group has also completed all approval procedures for share transfer.
The announcement shows that as of November 30, 2021, the unaudited net asset value of the above plots is about 650 million yuan. Shimao Group expects to gain about 270 million yuan after transferring the above projects. In the future, it is proposed to use about 90% of the income to reduce its liabilities and about 10% for other general corporate purposes.
Since the end of last year, Shimao Group has sold assets for many times in order to alleviate the liquidity pressure of the company.
On December 14, 2021, Shimao Group subsidiary Shanghai Shimao Co.Ltd(600823) transferred the property management business and related assets and liabilities involved in 29 companies including Shimao Property Management Co., Ltd. and Beijing maoyue Shengxin Enterprise Management Co., Ltd. to Shimao services, with a transaction transfer price of about RMB 1653.5 million.
On December 17, 2021, Shimao Group sold a property development project called “Victoria Harbour exchange” in southwest Kowloon, Hong Kong at a price of about HK $2086 million. The volume of the property is not large, and the ground area is only about 15700 square meters.
In January this year, the market also heard that Shimao Group planned to transfer Shanghai Shimao Plaza at a price of 10 billion yuan. According to public data, Shanghai Shimao Plaza, with an overall volume of about 58000 square meters, is located at No. 829, Nanjing East Road, Shanghai (near Tibet Middle Road) and near the people’s Square in the center of Shanghai.
However, on January 11, Shimao Group issued a Clarification Announcement. It did not enter into a preliminary agreement on the sale of Shanghai Shimao International Plaza, but was discussing the sale of some properties with some potential buyers. Under appropriate conditions, it would consider selling some assets to reduce the group’s liabilities.
It is understood that Shimao Group has not reached relevant agreements with potential buyers on the transfer of Shanghai Shimao Plaza. An analyst in Shanghai told reporters, “first, the project volume is large, the total price is not low, and there are not many enterprises that can take over. Moreover, the project location is superior. If the demand for funds is not very urgent, it may not be willing to transfer the project.”
One of the background of accelerating the disposal of assets is that many debts of Shimao Group are about to expire.
Shanghai Shimao construction, a subsidiary of Shimao Group, disclosed in an announcement on December 30, 2021 that seven debts of Shimao Group matured successively in January this year, with a total amount of about 3.03 billion yuan. Including the special asset support plan of Ping An Huitong bright supply chain No. 16, with a repayment scale of 1.16 billion yuan; Huatai West Dianzhong factoring No. 1 phase 1 asset support special plan, with a repayment scale of 480 million yuan; China Securities Co.Ltd(601066) – the first phase of the special asset support plan of Xinquan supply chain finance, with a repayment scale of 720 million yuan.
According to the announcement of Shanghai Shimao construction, by the end of November 2021, the unaudited sales contract amount of Shimao Group was 257.89 billion yuan, and the book capital was 69 billion yuan, of which the project pre-sale capital was about 52.9 billion yuan, which was limited by the pre-sale regulatory policy to a certain extent.
“As the vast majority of the company’s projects under construction have entered the middle and late maturity stage, the pre-sale funds of most projects have gradually exceeded the capital requirements regulated by the government.” Shanghai Shimao Construction said that the company took the initiative to coordinate relevant parties, mobilize various resources and take multiple measures to alleviate liquidity pressure and ensure debt repayment.
At present, the measures taken by Shimao Group include: on the one hand, accelerating the return of mortgage and sales funds; Secondly, the company took the initiative to adjust the business strategy of the enterprise. “The company has suspended the acquisition of new projects nationwide, increased the input-output efficiency analysis and dynamic control of existing projects, determined to concentrate resources on the development and construction of projects with high premium and fast sales decontamination speed, and temporarily postponed the development of holding properties to save engineering expenses.”
Relevant data show that at present, Shimao Group has obtained evidence that the saleable inventory is about 132 billion yuan, the value of goods that have been started without pre-sale certificate is about 112 billion yuan, and the total value of goods under construction is about 244 billion yuan.
Shimao Group also disclosed in the announcement that in 2022, the company will further strengthen the strength and scale of asset disposal, and further strengthen the liquidation and recovery of various operating creditor’s rights.
