Shimao's 23.9 billion land king may be recovered by 6.8 billion, Citic Trust's Shenzhen Longgang project may be cashed at a discount.

On July 18th, Shi Mao Group issued an open letter to all investors of the Zhongxin Trust Shenzhen Longgang Financing Aggregated Fund Trust Plan, including their opinions on a 6.8 billion yuan land acquisition and distribution plan in Longgang, Shenzhen, and made three statements. First Financial reporter exclusively learned that investors in the Zhongxin Longgang project can vote on the above plan starting from 9:00 am on July 18th, and a beneficiaries' meeting will be held at the end of the month. The core content of this land acquisition and compensation plan is that the relevant departments in Longgang, Shenzhen will reclaim 12 plots of land won by Shi Mao Group in 2017, which were the core assets of the once high-profile Shenzhen-Hong Kong International Center project. The land acquisition cost at that time was around 23.9 billion yuan, and the compensation this time is equivalent to a three-fold discount. Shi Mao Group had planned to build the first tallest building in China over 600 meters tall on one of these plots, but most of the project is currently at a standstill. According to the Trust Manager of the Zhongxin Longgang project, and a notice issued by Zhongxin Trust to investors on July 14th regarding the convening of the first beneficiaries' meeting in 2025, if the above plan is approved through voting, the project will proceed with a discounted compensation plan for investors. Some investors have received notifications saying that their cumulative redemption ratio will be around 85% of the total principal, but the redemption period will last until January 2027. According to the preliminary announcement by Zhongxin Trust, investor voting will continue until the end of July, when the beneficiaries' meeting is held. However, some investors have informed reporters that a communication outcome of the meeting on July 17th was that if investors holding more than 10% of trust units can propose a motion to suspend the vote, the decision and progress of the land acquisition plan can be stopped.