Skip to main content Skip to footer

Beijing: Shimaogongsan was sold to a subcompany of Zhongzhi Group at RMB1.65 billion

alt=""

According to the official announcement by China Beijing Equity Exchange on July 29, the auction of the asset located at No.13 Yard Gongti North Road in Chaoyang District of Beijing was concluded at RMB1.6545 billion, with Beijing Zhuorei Property Management Co., Ltd. (a subcompany of Zhongzhi Group) being the new landlord of the property. Per the auction announcement, the asset comprises a four-storey retail project (also known as Shimaogongsan), and 737 underground parking spaces and 49 underground storages. Prior to the transaction, the assets had four failed auctions, and the transaction price slumped nearly 40% compared to the first auction price of RMB2.302 billion in January 2019. 

Colliers View:

The transaction was concluded via judicial sale, which resulted in the asset value shrinkage. Since 2021, retail market has recovered steadily. This transaction reflected the investor’s positive sentiments towards the value-added projects. Currently in operation, the rental level of Shimaogongsan falls in the lower range compared to other retail developments in the Sanlitun Area, and still has rooms for rental growth. Underpinned by its good geographical location, Shimaogongsan also boasts large potential for upgrade and renovation, which can largely improve its overall rent level and promote the value of the property.