BlackRock is seeking to sell an office complex in Shanghai at about a 30% discount to its purchase price, people with knowledge of the matter said, reflecting the sluggish commercial property market in China’s biggest city, reports the South China Morning Post. 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.
BlackRock bought two towers at Waterfront Place from PGIM Real Estate for a reported RMB 1.2 billion ($167 million) in 2018. They have a total area of 27,805 square metres (299,290 sq ft) of office space in Chang Feng, a decentralised business district.
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.