Beijing Office Tower Sells To Ping An

Beijing Office Tower Sells For US$740mil To Ping An


CHINA – Amid Sino-Ocean Group Holding’s falling bond prices, the Chinese property developer has divested an office building in Beijing’s Fengtai District to Ping An Life Insurance for 5 billion yuan (US$740 million), according to a recent report from Yicai Global.

Notably, the insurance firm purchased the commercial property measuring 147,400 sq m (1.59 million sq ft) by paying 3.4 billion yuan in cash and assuming 1.6 billion yuan in debt.

The office building was completed in May 2021 after construction started in 2017. Beijing-based Sino-Ocean acquired its development rights from Shenzhen-based Ping An Life in 2015, but the deal’s financial details were not announced back then.

The sale of the office property marks the 2nd time that Sino-Ocean Group has divested assets over the last two months. The real estate developer unloaded some of its equity in a commercial complex in Beijing’s central Chaoyang district to China Life Insurance, a transaction that earned the company roughly 3 billion yuan.

Previously, Sino-Ocean Group appeared relatively protected from the woes plaguing China’s property industry, as the developer has not yet defaulted on its debts. However, the company’s bond prices have declined on several occasions. On 9 June 2022, the group’s seven-year US dollar bonds that were issued in 2019 plunged by about 30 percent.

Aside from that, the real estate developer’s Hong Kong-listed shares have performed poorly. So far, its stock price has fallen by nearly 30 percent since early-January.

Furthermore, Sino-Ocean Group’s profitability has been weakening. In 2021, the developer witnessed a 5 percent year-on-year dip in net profit to 2.7 billion yuan, based on its earnings report. Nonetheless, its revenue increased by 14 percent to 64.2 billion yuan during the same period.


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