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Shanghai Yingtong Greenland Building sold a portion of the premises via judicial sale for approximately RMB1.40 billion

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Shanghai Yingtong Greenland Building sold a portion of the premises via judicial sale for approximately RMB1.40 billion

On April 4, Shanghai Pacific Real Estate acquired a total of 119 units and 254 parking lots totaling 40,392.62 sq m in Shanghai Yingtong Greenland building via judicial sale for a total transaction price of about RMB1.40 billion. Shanghai Yingtong Greenland building is located at No. 88, Kaiping Road, Huangpu District. With a land use rights of commercial office land, Shanghai Yingtong Greenland building consists of a 19-storey 5A office and a 20-storey apartment-office building with retail amenities on the ground floor.

Collier’s View:

Located on the west bank of Huangpu River with close proximity to Huangpu Greenland BEING FUN, Shanghai Yingtong Greenland building is a Grade A office building in the area, enjoying sophisticated commercial atmosphere. It was belonged to Shanghai Yingtong Group. As of Oct, 28, 2021, the total debt of Shanghai Yingtong Group was amounted to RMB1.47 billion. In recent years, the company failed turning around the business and the Property was eventually disposed as non-performing asset. According to the news, the auction price was RMB1.40 billion, which was 56% of the valuation of RMB2.49 billion as revealed, and the unit price was recorded around RMB35,000 per sq m, significantly lower compared to the average price of similar assets nearby.

In recent years, influenced by the external economic uncertainties, some financially distressed companies were forced to undergo corporate restructuring. Consequently, more and more auction sales were emerged on the market. As a strong resistant estate product, office is highly sought-after by investors given its high value-add. Additionally, non-performing assets are often well below market price, offering investors rooms of asset appreciation in the long run.

Source:http://www.guandian.cn/article/20220406/291300.html