According to local media reports, a fund belonging to Singaporean property firm Ascendas is selling the Cross Tower in downtown Shanghai for approximately RMB 1.67 billion.
The buyer for the 24-storey commercial property is reported to be Hong Kong-based private equity fund, Gaw Capital Partners. Neither Ascendas nor Gaw Capital have confirmed this transaction.
Huangpu Building Changes Hands
Cross Tower, was put up for sale by Ascendas China Commercial Fund during the second half of 2012 with an asking price of between RMB 40,000 and 42,000 per square meter.
The building is located in Shanghai’s Huangpu district near the historic Bund riverfront and has about 42,000 sqm of leasable area.
Ascendas Active Near the Bund
Ascendas purchased Cross Tower in September 2010 for a reported RMB 1.3 billion from German property fund SEB Asset Management and Singapore-based Pacific Star Group.
The same Ascendas fund is reported to have sold another commercial building, Ocean Tower to ARA Asset Management earlier in 2013. The Ascendas China Commercial Fund is said to be nearing maturity and thus is selling properties to realize a profit for its investors.
The fund also sold Ocean Tower, another office building in the same district, to ARA Asset Management in the first quarter of this year for about CNY1.9 billion, according to real estate firm Jones Lang LaSalle.