Shimao Property to Pay Bondholders Restructuring Fee, Flags Hotel Listing

Shimao Property Holdings Ltd., the China property developer controlled by billionaire Xu Rongmao, is seeking to change the terms of bonds due in 2011 and 2016.

Shimao wants to be able to invest in ventures in which it holds a minority stake when “valuable business opportunities arise,” it said in a statement to the Singapore stock exchange. It also wants to be able to restructure units which hold an interest in its hotels and then list them on a stock exchange.

The developer, based in Shanghai, has no “definitive timetable” for a hotel restructuring and any such plan would be subject to market conditions, it said.

Shimao’s $250 million of floating-rate notes due 2011 are trading at 97.02 cents on the dollar while its $350 million of 8 percent notes due in 2016 trade at 94.02 cents, according to Nomura Holdings Inc. prices on Bloomberg.

Bondholders have until 5:00 p.m. New York time on Sept. 13 to respond and Shimao is offering to pay a $5.50 fee for each $1,000 of notes held to those who agree, the statement said.

To contact the reporter on this story: Katrina Nicholas in Singapore at knicholas2@bloomberg.net

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