RREEF buys China building for $153m

The Deutsche Bank real estate unit has reportedly bought a 40-story commercial building in Dalian, northeast China.

RREEF, the real estate investment unit of Deutsche Bank, has purchased a commercial building in Dalian for 1.05 billion yuan ($153 million, €103 million), according to the South China Morning Post.

Sources told the Chinese paper that the price paid for the 40-story Dalian Xiwang Building was “well below” market expectations. The seller was China Central Properties, which is listed on the London Stock Exchange’s Alternative Investment Market. In June, the company had announced the sale of the property at a loss of 20 million yuan. The building was completed last year and has a total gross floor area of 89,000 square metres.

Office prices in Dalian, located in northeast China, had experienced a 50 percent rise since 2005, but at the beginning of this year they began to taper off. Other private equity funds have made investments in the city. Last year Gateway Capital invested $130 million in a project to upgrade a site into an office-retail-serviced flat complex.