Absolutely No Fire Sale at the SWFC
Despite earlier reports of limited floor availability and persistent attempts to differentiate sales of floors in their building from typical strata title sales, Mori Building Co on 20th April appeared to be priming the market for sales of more space in the Shanghai World Financial Centre.
The company, which is Japan’s biggest privately held developer, now says it has sold the 68th to 72nd floors of the 101-story Shanghai World Financial Center. The 16,248-square-meter (174,828-square-foot) space was sold at an average price of 82,142 yuan ($12,588) per square meter, according to information from government-run Shanghai Real Estate Trading Center, which tracks property transactions.
In a statement reported in Bloomberg, company spokesman Michiho Kishi said,
“We have been very stubborn not to sell, but we found some clients who wanted to buy higher floors. We didn’t face financial difficulties but it may be better to collect some fresh cash as we prepare for future businesses.”
In case anyone doubted that potential buyers were beating down the doors of this apparently reluctant seller, Kishi went on to point out that Mori is still being approached by many buyers for more space in the building. Also, just so that buyers can make sure that they can still get in on this great deal before it disappears, the spokesman made it known that the property is 90 percent filled, leaving the company with “not so many” floors to sell.
Mori collected at least 1.3 billion yuan from the space it sold, based on calculations using the data from the Shanghai Real Estate Trading Center. The company may use the capital to expand in China and other markets including South Korea and Taiwan, Kishi said.
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