Just a little over two years after Goldman Sachs bought a Shanghai residential project for $190 million, the Wall Street firm is now poised to sell it for $328 million.
A unit of the developer Shanghai Forte will buy Shanghai Garden Plaza for $328 million, Bloomberg reported this morning. The developer confirmed the purchase in a statement to the Hong Kong stock exchange.
Bloomberg’s Cathy Chan reports:
Shanghai Garden Plaza was developed by Daito Trust Construction Co. of Japan and comprises 53 villa units and 511 serviced apartment units, CB Richard Ellis, a Los Angeles-based commercial real estate services firm, said in its report.
Goldman Sachs is selling Shanghai Garden Plaza after Chinese real-estate prices climbed the most in 18 months in December and Premier Wen Jiabao pledged to crack down on speculation and keep housing affordable.
Residential and commercial real-estate prices in 70 cities increased 7.8 per cent from a year earlier in December, accelerating from a 5.7 per cent gain in November, according to the government. China last month raised the amount of money banks are required to keep as reserves and re-imposed a sales tax on homes sold within five years of their purchase.