BlackRock to sell Shanghai office towers acquired for US$167 million in 2018 for 30 per cent discount, sources say
- The New York-based asset manager is marketing the property in northwestern Shanghai at a reduced rate to speed up the sale
- Prime offices in Beijing and Shanghai traded at capitalisation rates of about 5 per cent last quarter, the highest in more than a decade, Colliers data shows
The New York-based asset manager is marketing the property in northwestern Shanghai at a reduced rate to speed up the sale, according to the people, who asked not to be identified because the information is private.
A representative for BlackRock declined to comment.
Finding a buyer in China’s current commercial property market may be difficult, with other institutional investors offloading offices as the weak economy and oversupply weigh on the sector. Falling rents and a global trend to reduce exposure to office assets make such properties less appealing to potential investors.
In Shanghai, office rents fell to their lowest level in almost a decade last quarter, and they might decline further this year due to a growing supply pipeline, according to Colliers International.
