Morgan Stanley has agreed to sell Shanghai serviced apartment block, Shama Xujiahui, for around 780 million yuan (HK$885 million; $114 million), according to the South China Morning Post.
The newspaper says Morgan Stanley Real Estate is completing the sale of the 219-unit asset to a local investor. The bank acquired the asset in early 2007, added the report.
Morgan Stanley acquired a majority stake in Shama, a Hong Kong-based provider of luxury boutique serviced apartments, through a management-led buy-out, towards the end of 2006.
At the time of the purchase, the firm’s then executive director and head of Morgan Stanley Real Estate in Asia Pacific, Zain Fancy, said Asia's serviced apartment sector was highly fragmented. The company said demand for luxury serviced accommodation was expected to continue to outstrip supply in the foreseeable future with no new units anticipated to come online in the Central Business District on Hong Kong Island until 2010.