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SHANGHAI-Investment bank Morgan Stanley has sold an office building here for $358.7 million. The buyer, property developer Soho China Ltd., now owns Dong Hai Plaza, a 52-story office and retail property located on Nanjing Road.

Soho China’s current portfolio is heavy on properties located in Beijing, but company officials in a press release say they are confident in the value of the property and look forward to utilizing the purchase to begin it’s expansion into the Shanghai market.

“Our business model of selling commercial properties in the most prosperous city center areas… has already proved successful in Beijing,” says Soho China chairman Pan Shiyi. “We are confident the model will succeed in Shanghai as well.”

The property market in China’s largest cities has plummeted in recent months, with vacancy hitting some of the highest levels yet seen. Dong Hai Plaza is no different. According to reports, the property is only 30% occupied.

Morgan Stanley originally purchased the property in 2006, when it was still unfinished. At the time the bank added the building to its portfolio for $245 million. Construction initially began on the building, which is one of the tallest in Shanghai, in the 90s.

Soho China plans to rename the property to Soho Exchange. It will work to either lease or sell the remaining office space.

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