Report says CK Asset mulls selling stake in landmark Shanghai projectBusiness | 15 May 2019 1:30 pm
CK Asset Holdings (1113) is considering selling its stake in a large project in Shanghai, Bloomberg reported, citing people familiar with the matter.
The landmark project – Upper West Shanghai in the city’s northwestern Putuo district – was billed as one of the largest mixed-used developments in the financial hub when construction started in 2011. A sale could value the entire project at about 20 billion yuan, the people said, asking not to be identified because the discussions are private. CK Asset has a 60 percent interest.
A transaction of that size would rank among the biggest commercial property deals in China. CK Asset itself holds the title for the second-largest deal in the country after it offloaded a half-stake in the Century Link project in Shanghai’s Pudong district for 20 billion yuan in 2016, according to Real Capital Analytics. China Overseas Land & Investment’s 31-billion-yuan purchase of Citic’s property assets in 2016 as part of a government-backed restructuring holds the record.
CK Asset “frequently receives offer proposals but these don’t necessarily mean the company will accept and sell the projects,” said Wendy Tong Barnes, chief corporate affairs officer.
The remaining 40 percent of Upper West Shanghai is held by minority investors represented by Zhoushan-based Herun Group Co. Representatives from Herun didn’t immediately respond to a request for comment.
Upper West Shanghai houses residential units, offices, retail space and a hotel in a total floor area of 1.2 million square meters. The project, in a less developed part of the city that the government wants to transform into another central business district, also includes plans for a skyscraper that isn’t yet completed.