KKR and AEW Capital Management are trying to offload Chinese commercial real estate assets at deep discounts, according to people familiar with the matter. The two investment firms are marketing properties in major Chinese cities, reflecting the ongoing slump in the country's property sector.
What's being sold
The portfolio includes office buildings and retail spaces that KKR and AEW acquired during a more optimistic period for China's real estate market. Now, they're offering the assets at prices well below what they paid, a sign of how far values have fallen. The exact size of the portfolio and the losses being taken weren't disclosed.
Why the fire sale
China's property market has been under pressure for years, with developers defaulting and vacancy rates climbing. Commercial real estate has been hit especially hard as demand for office space shrinks and retail landlords struggle. For global investors like KKR and AEW, the decision to sell at a loss suggests they see little chance of a near-term recovery.
The move by two major institutional players could signal that other foreign investors are also looking to exit. If more distressed sales follow, it might push prices even lower. But it could also attract opportunistic buyers willing to bet on a turnaround. For now, the market remains cautious.
Neither KKR nor AEW commented on the sales. The firms are expected to continue marketing the properties in the coming months.
