Chinese developer Shimao sells unit in a bid to reduce debt

Jan 21 (Reuters) – Chinese real estate company Shimao Group Holdings (0813.HK) on Friday announced the sale of its unit to a state-owned entity in order to reduce its debt.

Shimao’s unit, Shanghai Shiying Investment Management Company, sold its entire stake in Shanghai Shimao Real Estate Development to property developer Shanghai Jiushi North Bund Construction and Development Co for 1.06 billion yuan ($167.26 million).

The deal comes as Chinese developers, including Evergrande (3333.HK) and Kaisa Group (1638.HK), grapple with liquidity crunches amid tighter regulations.

The company, in a statement to the exchange, said the terms of the disposal agreement were “fair and reasonable” and on normal commercial terms.

($1 = 6.3375 Chinese yuan renminbi)

Reporting by Tejaswi Marthi in Bengaluru; Editing by Amy Caren Daniel

Our Standards: The Thomson Reuters Trust Principles.