Fortune Spring Ventures to sell stake in SPV for $267.89 million
Real Estate

Fortune Spring Ventures to sell stake in SPV for $267.89 million

Shimao Group Holdings, a Chinese developer, announced on Friday that its unit Fortune Spring Ventures would sell its stake in three special purpose vehicles for $267.89 million.

The agreement comes as Chinese developers, led by Evergrande and Kaisa Group, struggle with liquidity shortages as a result of new regulations.

Shimao said its unit would sell 22.5% of each of Asia Bright Development, Star Galaxy, and Grand Victoria Finance's issued share capital.

The three special purpose vehicles are in charge of managing and developing a property development project in Hong Kong's South West Kowloon district.

It also said that the stake sale would provide additional working capital and improve cash flow for the company, while also indicating that the disposal could result in a loss of about HK $770 million.

Rating agencies Moody's and Fitch downgraded Shimao by two notches due to the company's increased financing risks.

Worries about an asset sale and cancelled apartment deals caused sharp drops in the company's stock and debt earlier this week.

On July 5, 2006, Shimao Group Holdings Limited was listed on The Stock Exchange of Hong Kong Limited's mainboard.

The Group focuses on large-scale, high-quality, integrated real estate projects in China, with a particular emphasis on cities with strong, dynamic economic growth potential. The development of residential, hotel, office and commercial properties is a priority for the Group.

Image Source

Shimao Group Holdings, a Chinese developer, announced on Friday that its unit Fortune Spring Ventures would sell its stake in three special purpose vehicles for $267.89 million. The agreement comes as Chinese developers, led by Evergrande and Kaisa Group, struggle with liquidity shortages as a result of new regulations. Shimao said its unit would sell 22.5% of each of Asia Bright Development, Star Galaxy, and Grand Victoria Finance's issued share capital. The three special purpose vehicles are in charge of managing and developing a property development project in Hong Kong's South West Kowloon district. It also said that the stake sale would provide additional working capital and improve cash flow for the company, while also indicating that the disposal could result in a loss of about HK $770 million. Rating agencies Moody's and Fitch downgraded Shimao by two notches due to the company's increased financing risks. Worries about an asset sale and cancelled apartment deals caused sharp drops in the company's stock and debt earlier this week. On July 5, 2006, Shimao Group Holdings Limited was listed on The Stock Exchange of Hong Kong Limited's mainboard. The Group focuses on large-scale, high-quality, integrated real estate projects in China, with a particular emphasis on cities with strong, dynamic economic growth potential. The development of residential, hotel, office and commercial properties is a priority for the Group. Image Source

Next Story
Infrastructure Transport

JNPA Becomes First Indian Port to Cross 10 Million TEU Capacity

The Jawaharlal Nehru Port Authority (JNPA), located at Uran in Navi Mumbai, has become the first port in India to achieve over 10 million TEUs (twenty-foot equivalent units) in container handling capacity.With the recent expansion, the port now operates five container terminals with a combined capacity of 10.4 million TEUs, alongside two liquid and two general cargo terminals.Handling more than half of India’s container traffic, JNPA processed 7.05 million TEUs in 2024 and has moved 15.39 million tonnes of containers and 16.64 million tonnes of total cargo in the first two months of FY 2025â..

Next Story
Infrastructure Transport

Nod for Rs. 36.26 billion Expansion of Pune Metro Line 2

The Union Cabinet has approved the Rs.36.26 billion expansion of Pune Metro Line 2, adding 12.75 km of track and 13 new stations to improve east–west connectivity across the city.The project aims to link Pune’s urban core with rapidly growing suburbs, supporting the city’s rising demand for efficient and sustainable transport solutions. This expansion is part of Corridor 2 of the Pune Metro and includes two key routes: Vanaz to Chandani Chowk (Corridor 2A) and Ramwadi to Wagholi/Vitthalwadi (Corridor 2B).It will connect residential, IT, and educational hubs in areas such as Bavdhan, Koth..

Next Story
Infrastructure Transport

Assembly begins for ‘Nayak’ TBM on Thane– Borivali Twin Tunnel Project

The assembly of ‘Nayak’, the first of four Tunnel Boring Machines (TBMs) for the Thane–Borivali Twin Tube Tunnel Project, has commenced at the Thane site. Built by German firm Herrenknecht AG and deployed by Megha Engineering & Infrastructure (MEIL), the TBM marks a key milestone in Mumbai’s ambitious 11.8-km underground road corridor beneath Sanjay Gandhi National Park.The twin tunnels will reduce the Thane–Borivali travel distance by 12 km and decongest Thane Ghodbunder Road. ‘Nayak’, with a 13.2-metre diameter, is designed to bore through challenging geological conditions ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?