Another of China’s embattled property developers, Shimao Group Holdings, failed to make some trust payments and is yet to agree terms on repayment extensions for high-yield products worth around RMB 6 billion ($948 million), reports Bloomberg. The builder didn’t make payments for principal and interest on a portion of the trust products that came due last week, according to a statement to investors from Citic Trust Co. that was seen by Bloomberg.
The trust firm said it hasn’t reached an extension agreement with Shimao and it will continue to urge the builder to repay, according to the statement. It’s not clear if the product has a grace period.
Shimao—which builds residential and commercial properties and is among the largest debt issuers in China’s real estate sector—last week told investors that it has about RMB 1.3 billion of these short-term investments due this month and RMB 4.7 billion maturing between April and August, according to people familiar with the matter.