After Yajule, another shareholder of Guangzhou Asian Games city project also transferred the equity to CNOOC real estate.
On the evening of January 24, Shimao Group (00813. HK) announced that it had sold 26.67% equity of Guangzhou Asian Games City Project at the price of 1.844.5 billion yuan. Shimao said that it is expected to realize the sale income of about 716 million yuan. About 80% of the proceeds from the sale is intended to be used to reduce liabilities and about 20% for general corporate purposes.
Public information shows that the Guangzhou Asian Games city project is located in Shilou Town, Panyu District, Guangzhou. It is a mixed commercial and residential complex with a total construction area of about 5.85 million square meters and a site area of about 2.521 million square meters. Up to now, the building area of the property of about 4.06 million square meters has been developed into residential and commercial units and parking lots. The remaining construction area is still under construction and is expected to be completed by the end of 2025.
The “Big Mac” project has a history of 12 years since it was sold. In December 2009, the project was won by R & F, Yajule and country garden with a total land price of 25.5 billion. It was once ranked as the “national land king”. In June 2010, Shimao acquired 20% of the equity of Guangzhou Asian Games city project by taking shares.
Since then, after the change of CNOOC’s acquisition of CITIC and R & F’s exit, the project is held by CNOOC, Yajule, country garden and Shimao, with shareholding ratios of 20%, 26.6%, 26.7% and 26.7% respectively. According to the information disclosed by Kerui, the project is jointly operated by Shimao and country garden. Shimao and country garden are responsible for marketing, while Zhonghai and Yajule are responsible for finance and property respectively. According to Kerui data, in 2021, the project achieved a sales amount of 9.223 billion yuan, and has won the top sales in Guangzhou for five times.
After the completion of the transaction with Yajule and Shimao, the shareholding ratio of CNOOC in the project will reach 73.3%, and the rest of the equity will be held by country garden. At present, country garden is still responsible for the marketing of the Asian Games city project. However, it is not clear how the specific trading work of the project will be adjusted after CNOOC is promoted to the largest shareholder.
Looking back, Shimao, which is focusing on increasing liquidity through asset disposal, disclosed its first transaction this year on January 21. It sold a parcel of land located on the North Bund of Shanghai to Shanghai Jiushi group at a total price of 1.06 billion yuan. The latter is mainly engaged in the operation of state-owned assets and government investment projects authorized by the Shanghai Municipal People’s government, which is wholly owned by the Shanghai state owned assets supervision and Administration Commission.
At present, Shimao’s action is consistent with its previous statement. On December 30, 2021, Shanghai Shimao Construction said in the announcement of Shanghai stock exchange that it had established a special asset management platform to promote the disposal of operating assets in the first and second tier core cities, so as to quickly recover funds and reduce liabilities. In 2022, the strength and scale of asset disposal of Shimao Group will be further strengthened on this basis.
Recently, there has been frequent market news that Shimao has many assets on the shelves, including many projects in Shanghai. “We all know that Shimao sells assets all over the country, and the price expectation is not low.” Insiders told reporters.
It is worth mentioning that on January 10, Shenzhen Ping An Huitong Investment Management Co., Ltd. announced that Shimao’s “bright 16A” ABS was delisted, with an issuance scale of 1.16 billion yuan; On January 17, Shanghai Shimao Co.Ltd(600823) completed the cashing of “19 Shimao G1” bonds, with a total amount of 2 billion yuan.
