(Yicai) Jan. 2 -- Gemdale, a major Chinese property developer, has sold a commercial and residential complex project in downtown Shenzhen to a state-owned buyer, garnering CNY3.3 billion (USD463 million) from the sale to alleviate its debt repayment pressure.

Gemdale and its project partner will transfer all the equity in Jindi Xinsha Property Development, which is building the project in the Shenzhen’s Futian district, to a company under the city government, the Shenzhen-based seller announced recently.

Specifically, the property developer will sell its 51 percent stake in Jindi Xinsha for CNY1.3 billion, and recover a CNY1.9 billion shareholder loan it gave to the project company earlier plus interest.

The project, which includes residential, hotel, and office spaces as well as a shopping center, is mostly in the early stages of development, but several residential buildings started pre-sales last September, according to Gemdale. But sales are not ideal because as of Dec. 28, just 34 percent of the 714 available units had been sold, according to local government data seen by Yicai. 

Meanwhile, debt pressures are mounting as Gemdale has four bonds worth a total of CNY5.6 billion maturing in the next three months, including CNY1.5 billion on Jan. 12, per financial data provider Wind. In the next 12 months, it has CNY12.1 billion (USD1.7 billion) of expiring yuan-denominated notes and a US dollar bond worth USD480 million. 

Last year’s sales are expected to be unimpressive as in the first 11 months, Gemdale's contracted sales tallied CNY143.1 billion (USD20.1 billion), down 29 percent from a year ago, with an area of 8.1 million square meters, down 11 percent, according to data disclosed earlier.

The asset sale failed to boost Gemdale's stock price [SHA: 600383] as the shares closed down 2.8 percent at CNY4.24 (US 60 cents).

Editors: Tang Shihua, Emmi Laine