By ZHANG Xiaoyun
The first round of a judicial auction for Shimao Shenzhen–Hong Kong International Center, an unfinished skyscraper in Shenzhen, ended with no bids on Tuesday.
Under the hammer are the land use rights and above-ground properties of 12 plots owned by Shenzhen Shimao New Milestone Industrial Group, valued at 16.3 billion yuan (US$2.25 billion). The starting price was set at 13.04 billion yuan, 80 percent of the assessed value.
In December 2017, Shimao Group acquired the plot for 24 billion yuan, a floor price of 17,500 yuan per square meter, the second-highest price paid in Shenzhen at the time.
A 668-meter tower – the highest building in China - was to be built on the site, but it was never completed.
Some construction work has restarted, but not part of the lot s up for auction. The site of the “tallest building in China” is covered with grass, construction materials are randomly strewn on the ground.
In March 2022, Shimao Group’s auditor PwC resigned, demanding the company to reveal the details of several previously hidden projects, the Shenzhen–Hong Kong International Center among them.
CITIC Trust has been issuing trust products based on the Center since 2017. In July 2020, a trust fund of 8.7 billion yuan was established. In February 2022, CITIC Trust said that 5.7 billion yuan had gone astray, and construction was suspended.
After the unsuccessful auction, if the project is relisted, it may be offered at a further 20 percent discount based on the previous auction price of 13 billion yuan.
