China Enterprise to sell building in Shanghai

Property developer China Enterprise Co Ltd<600675> plans to sell an office building to Shanghai Industrial Investment (Holdings) Co Ltd for RMB 870 million (US$122 million) to replenish cash for future projects, according to its filing with the Shanghai Stock Exchange.

The building in downtown Jing'an District, which China Enterprise acquired for RMB 540 million in 2006, is scheduled to complete construction this year, with a total gross floor area of more than 28,700 sq m.

The developer said earlier it will invest about RMB 5 billion to develop high-end houses – mainly villas – in the city. Currently, it has more than 140,000 sq m property for rent, and it targets to increase its rental area to 250,000 to 300,000 sq m within three years, with annual rental up to RMB 274 million in 2011.