The disposals come after Shimao put its assets worth 77 billion yuan ($12.11 billion) up for sale to raise funds to repay its debts, and it sold two other assets during the past two weeks for 3 billion yuan.
The Shanghai-based property developer said late Friday it had sold Hyatt on the Bund to state-owned Shanghai Land (Group) Co for 4.5 billion yuan.
Its chairman, Hui Wing Mau, also sold his 40% stake in a high-end Hong Kong residential project to Hong Kong investors CSI Properties and CC Land Holdings for HK$1.05 billion ($134.68 million). dollars), according to separate statements from the buyers on Friday.
China’s state-owned real estate companies are set to acquire more assets from private developers struggling with a cash crunch, analysts say, as Beijing steps up efforts to stabilize and tighten control of a battered sector that accounts for a quarter of his economy.
Financial media Cailianshe reported over the weekend that a state-owned healthcare real estate company in northeastern Shandong province could become the controlling shareholder of China Aoyuan Group, and that it has completed preliminary due diligence.
Shares of Shimao gained 4.8%, while those of Aoyuan rose 6.8%. The Hang Seng Mainland Properties Index rose 2.2%.
($1 = 6.3605 Chinese yuan)
($1 = HK$7.7962)