SHIMAO GROUP(HK:00813) Nan Fang Du Shi Bao·2025-07-21 12:50Core Viewpoint - The Shimao Shenzhen-Hong Kong International Center, once aimed to be "China's tallest building," is experiencing a potential turnaround after years of stagnation and two failed auctions, with a new land acquisition risk mitigation plan proposed by CITIC Trust [1][15]. Group 1: Land Acquisition Plan - CITIC Trust has proposed a land acquisition risk mitigation plan involving the acquisition of 12 land parcels from Shimao Group for a total compensation of 6.8 billion yuan, which is significantly lower than the original land value [2][10]. - The plan includes a phased payment structure, with 15% paid within two months, 35% within six months, and the remainder by January 31, 2027 [2][5]. - The compensation framework aims to provide partial returns to trust investors and create conditions for revitalizing the land parcels in Longgang District [5][15]. Group 2: Project Background and Challenges - The Shimao Shenzhen-Hong Kong International Center was initially planned as a mixed-use complex featuring exhibition, entrepreneurial, and commercial spaces, with a planned height of over 700 meters [5][12]. - The project has been stalled since 2022 due to Shimao Group's debt crisis, which has prevented any progress in construction [5][12]. - Shimao Group has raised concerns regarding the adequacy of the proposed compensation, stating it is less than one-third of the original land value and has initiated administrative litigation against CITIC Trust [7][10]. Group 3: Historical Context and Financial Implications - In 2017, Shimao Group acquired the land for the project at a record price of 23.943 billion yuan, which highlights the stark contrast with the current proposed compensation [10][14]. - CITIC Trust's financing plan, initiated in 2019, faced repayment difficulties in 2022, leading to forced execution and two failed auctions of the project's assets [14][15]. - The current land acquisition plan is seen as a critical step towards resolving the project's long-standing issues and potentially reviving its development [5][15].