Chinese Developer Shimao Group Divests Assets to Lower Debt

Shimao Group, Chinese property developer joined smaller peer Agile Group to sell its stake in a Guangzhou complex to state-owned partner China Overseas Land & Investment (COLI) in a push to reduce its debt.

The developer held 26.7% stake in the Guangzhou Asian Games City, the same as Agile, said late on Monday it sold its holdings to joint venture partner COLI for 1.84 billion yuan ($290.65 million).

Shimao earlier defaulted on a trust loan and extended some asset-backed securities payments this month, has been selling some of its properties to lower debt.