Morgan Stanley prices apartments at 1.1b yuan
Morgan Stanley Real Estate Fund is selling its majority-owned serviced apartment property in Shanghai for about 1.1 billion yuan (HK$1.24 billion) amid a slowing property market.
The sale plan was triggered by a desire to take profit before investment market activities on the mainland shrink further, according to property consultants. The market has been hit by the global credit crunch and tightened lending policies towards both mainland and overseas investors.
The private equity real estate fund of the United States-based investment bank has invited interested parties to bid for Lanson Place Jin Lin Tian Di in Xintiandi, the city's trendy entertainment and dining area. It was asking between 55,000 yuan and 60,000 yuan per square metre, sources said.
The property is 23 per cent owned by Hong Kong-listed USI Holdings. The fund run by Morgan Stanley owns the bulk of the remaining 77 per cent. Some individuals might have a 'very small' interest, a source said.
Morgan Stanley and USI declined to comment on the sale.
The 106-unit block comprises 18,538 square metres of space for serviced apartments and a clubhouse of 1,300 sq metres. It also has 50 car parking spaces.
