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|
Location (City) |
Asset Type |
Transaction Date |
Size (Sqm) |
Value (USD) |
|
Shanghai |
Office |
Q3 2021 |
40,445 |
Confidential |
Buyer: GsunFund Mgmt
Seller: Confidential
Services provided: Brokerage
The Challenge
Through most of the first half of 2021, the Shanghai real estate investment market was at a low and investment institutions tended to bid more cautiously for assets.
The lease of the largest tenant of the project (which occupies 20% of the total floor area) would expire during the transaction trading period, which caused uncertainty about the future cash flow of the project – adding to the low business confidence in property investments and returns.
Additionally, stringent compliance and regulatory documentation for the transaction was also required.
The Strategy
Colliers conducted a comprehensive analysis of the Shanghai Business Park market and the project itself, fully explored the investment highlights of the project, and combed the investment logic of the business park for investors.
Together with research and leasing teams, Colliers provided in-depth studies on the latest trends of the business park market to prospective investors and provided suggestions for the leasing strategy of the project, eliminating investors' concerns about leasing risk.
At the same time, Colliers worked with prospective acquirers and the vendor, liaising with relevant government departments to ensure essential and critical documentation was done.
The Solution
Colliers provided advisory services to both acquirer and the vendor, and participated in business negotiations throughout the process, actively assisted in the implementation of the Due Diligence Process and ultimately facilitated the completion of the transaction successfully.
The Result
Colliers was able to identify an acquirer who was equipped with financial strength and the ability to close the case within the expected time of the vendor, and successfully completed the transaction in a short period of time, resulting in receiving high evaluation from both sides.
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