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Lerong Building auctioned for RMB573 million; capital market eyeing for redevelopment potentials for distressed assets

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Lerong Building auctioned for RMB573 million; capital market eyeing for redevelopment potentials for distressed assets

On November 30, the headquarter of LETV - Lerong Building, which is located on Yaojiayuan Road in Chaoyang District of Beijing, was successfully auctioned for the reserve price of RMB573 million with Beijing Hengying Property Management Co., Ltd being the new owner of the property.

Lerong Building is located next to Chaoyang Park, and adjacent to the East Fourth Ring North Road. The 14-storey Lerong Building has a total GFA of about 19,600 square metres (sq m) with retail podiums locating on the first and second floors and offices locating from 3rd to 14th floor.

Colliers’ View:

Largely affected by the hovering epidemic and the current economic condition, more and more distressed assets were seen on the market. Considering there are limited en-bloc opportunities on the open market in recent years, auction provides an alternative channel for players to acquire some quality assets on the market. As an alternative investment, the potential of distressed asset can be uncovered with refined renovation, upgrade and management, hence achieving value maximization.