(Yicai Global) Jan. 25 -- Chinese property developer Shimao Group Holdings has followed in Agile Group Holdings' footsteps and sold its stake in the Guangzhou stadium that hosted the Asian Games in 2010.

Shimao transferred its nearly 26.7 percent stake in Lihe Property Development, the operator of the Guangzhou Asian Games City project, to a unit of China Overseas Land and Investment for CNY1.8 billion (USD284.4 million), the Hong Kong-based seller said in a statement yesterday. Consequently, it expects to gain CNY716 million (USD113.1 million) in revenue.

A consortium of Agile, COLI, and Country Garden Services Holdings won the CNY22.5 billion (USD3.6 billion) bid to build the stadium in the southern Chinese city in 2009. Shimao joined the group later. But after the multi-sport games were held, the stadium area continued to be upgraded. The Guangzhou Asian Games City, which totals nearly 5.9 million square meters, is expected to be finished in 2025.

The seller was motivated by its need for cash. Shimao intends to spend about 80 percent of the proceeds to repay its debts, it said. The remainder will be considered capital for general corporate purposes.

The deal follows another similar one. Guangzhou-based Agile said yesterday that it intends to sell its almost 26.7 percent stake in the project to a subsidiary of COLI for CNY1.8 billion. COLI is a Hong Kong-based company controlled by China State Construction Engineering, a leading construction conglomerate.

Real estate has recently been changing hands in China due to developers' tight financial situation. Shimao’s Shanghai unit said last December that it had established a special asset management platform to promote the disposal of assets in first and second-tier cities to reduce the parent's debts this year. That plan has been activated. On Jan. 21, Shimao said that it will sell a parcel of land in Shanghai's North Bund to Jiushi Group for nearly CNY1.1 billion.

Shimao's stock price [HKG: 0813] closed 1.3 percent down at HKD6.09 (US 80 cents).

Editor: Emmi Laine, Xiao Yi