The Abu Dhabi Investment Authority (Adia) reportedly sold a USD 1.5 bn stake of its holding in One Museum Place — a grade A, 60-floor office tower in Shanghai — to a fund backed by Chinese state-linked insurer China Post Life Ins., Mingtiandi reports, citing a corporate announcement by the buyer that was later removed following inquiries from the publication. The sale was made through an investment vehicle managed by China Merchants Bank and majority owned by China Post Life Ins., at a unit price of USD 8.2k-9.6k per sqm and a 4.5% capitalization rate.

What we know: The tower had been on the market for over a year, and the sale was reportedly conducted at a 20% discount from Adia’s initial asking price, though it still values the tower at USD 1.5 bn. Adia declined to comment on the transaction when contacted by EnterpriseAM UAE.

Who owns what now? While Adia offloaded its majority stake in the tower, it retains a minority holding of around 30-40% through the fund, with China Post Life Ins. nabbing a 50% stake. Houston-based developer Hines — Adia’s longtime investment partner and developer of the project — also participated in the sale but will continue to manage the property.

About One Museum Place: The 1.4 mn square foot office tower is 90% occupied with key tenants including Guotai Junan Securities, Pfizer, and Tencent affiliates.

IN CONTEXT- The move reflects Adia’s recalibration in China amid rising office vacancies and declining rental yields. With Shanghai’s commercial real estate market facing macro-headwinds, foreign investors and private funds have largely stepped back, leaving state-backed players to acquire discounted assets. Adia’s divestment also comes as part of what seems like a broader optimization strategy to ration its global real estate portfolio, which has also seen it divest stakes in UK shopping center Liverpool ONE and in 33 hotels under Marriott International brands in the UK.

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