Citygroup sell Shanghai tower for US$105 mil

Citygroup Property Investors have sold Novel Plaza, the 22-storey prime Shanghai office building, to Capital Strategic Investment Limited. The en bloc sale which valued the property at US$105 mil was completed via a share purchase of an offshore vehicle.

Located in People's Square at No 128 Nanjing West Road, the property covers a construction area of over 29,000 sqm. Flagship tenants include AIG and Texas Instruments. Citigroup bought the building in 2005 for US$76 mil.

According to Jim Yip, Head of North China Investment for DTZ, who advised Citigroup on the sale, "there have been other similar en-bloc office transactions with holding periods of less than 2 yrs."

Rising rents and limited new supply mean that the Shanghai office market continues to be attractive to investors, said Yip. RFP