New World reported to sell a Shanghai K11 office, shares fall

New World Development (0017) was reported to sell the offices at its iconic K11 project in Shanghai for 2.85 billion yuan (HK$3.11 billion), sending its shares tumbling by 2 percent.

The sale was reported by China’s state-owned newspaper Securities Times, citing commercial property agencies.

The 81,000-square-meter tower at 300 Huaihai Middle Road—a landmark since its completion in 2002—is being offered as a single transaction covering floors 11 through 58. The K11 Art Mall occupies floors one to 10.

Originally named Shanghai Hong Kong New World Tower, the property was repositioned in 2013 when New World injected 400 million yuan to convert its retail section into mainland China’s first K11 arts-integrated shopping destination. 

Shares of New World once dived as much by 2.1 percent to HK$5.45 in the morning, before narrowing fall to 1.26 percent and stood at HK$5.5 apiece.

STAFF REPORTER