Property developer Shimao Group to auction flagship project in Shenzhen

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Chinese property developer Shimao Group is auctioning its flagship Shimao Shenkong International Centre in China’s technology hub of Shenzhen in another effort to repaying debt, at a starting price of 13 billion yuan ($1.8 billion).

The project includes the usage rights to 12 plots of land as well as attached buildings in Shenzhen’s Longgang district. The auction will start on July 4 with an assessed price of 16.3 billion yuan ($2.3 billion) and a mark-up of 65.2 million yuan for each bid, according to the auction platform of e-commerce giant JD.com.

Shimao purchased the site for 23.9 billion yuan in December 2017 and had planned to build a mixed-use commercial area including offices, shopping malls, and apartments, with 50 billion yuan of investment. But after China tightened real estate financing in 2021, Shimao defaulted on debt last July and the construction of the project had being stalled for a year before a partial resumption last month.