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CapitaLand Development (CLD) has sold the 90-unit Ascott Heng Shan Shanghai to a mainland investor, as cash-rich corporate investors continue to seek discounted acquisition opportunities amid China’s property slump.

A spokesperson for CapitaLand Development China said: “The divestment is in line with CLD’s business strategy to realise development profits at the opportune time, with a view to recycle the capital into new opportunities.”

The property continues to operate as usual and remains under the management of ASAP Operator Member The Ascott Limited.

“China is one of three core markets for CLD, alongside Singapore and Vietnam. We hold a long-term view of China and continue to be on the lookout for investment opportunities,” said the CLD China spokesperson.

The Ascott Limited owns or operates over 200 properties totaling 45,000 units across 42 cities under brands including Ascott, Somerset, Citadines, lyf, Oakwood and Adoor, according to the company’s website. Earlier this month, Ascott appointed InterContinental Hotels Group veteran Huang Weimin as managing director of Ascott China, replacing Tan Sze Shang.

The sale follows that of the Somerset Xu Hui Shanghai serviced apartment building in 2021, at a time that global investors are committing more cash to rental residential projects in Shanghai on the back of strong demand from young professionals, increasing preference for renting amid high home ownership cost.