Global buyout funds and property investors including Blackstone Group are vying to buy up to four commercial buildings in Shanghai for as much as $1 billion.
Super Ocean Group has put a package of four buildings on sale as it seeks cash to support its growth in other sectors.
The four buildings to be sold by Super Ocean include the Bank of Shanghai Tower in the Lujiazui area of Shanghai’s Pudong financial district, and Southern Securities Mansion, located on Nanjing Road, one of China’s busiest commercial streets.
Super Ocean aims to sell the four buildings together but potential bidders have the option to purchase three of the four. They put the price tag for the deal at RMB5 billion to 7 billion ($728.8 million-$1.02 billion).
It is suggested that talks between Blackstone and Super Ocean could collapse over valuation of the buildings.
One source said, ‘It’s not easy for Blackstone and Super Ocean to reach a deal as Super Ocean is probably asking too much for these properties. There are also concerns about the ownership structure, which is a bit complicated for some of the four buildings.’