Chinese conglomerate CEFC China Energy Co. Ltd. intends to divest its entire global real estate portfolio, with a total book value upward of 20 billion yuan, amid growing scrutiny from the government, Bloomberg News reported, citing people familiar with the matter.
The portfolio of approximately 100 projects include office buildings, hotels, residential apartments and industrial facilities that are mainly spread across China, with some located in Europe and the U.S., the March 27 report noted.
The conglomerate's real estate holdings include a condominium at the Trump World Tower in Manhattan, N.Y., the CEFC Mansion in downtown Shanghai, the Shanghai Tomorrow Tower, and some floors in the Hong Kong Convention and Exhibition Centre, according to the report.
CEFC is among other Chinese conglomerates, such as HNA Group Co. Ltd. and Anbang Insurance Group Co. Ltd., which are under pressure from the Chinese government to sell assets and pay down debt.
Bloomberg said CEFC did not immediately respond to requests for comments.
As of March 26, US$1 was equivalent to 6.27 yuan.