(Yicai) Dec. 28 -- Struggling Chinese property developer Overseas Chinese Twon Asia Holdings will sell several assets, including its five-star Bulgari Hotel in downtown Shanghai, to Chinese building products manufacturer Jinfeng Cements Group for CNY2.4 billion (USD340.4 million) to repay loans and borrowings.

The Shanghai unit of OCT Asia signed an agreement with Jinfeng Cements on Dec. 25, the Hong Kong-based seller announced on Dec. 26. The transaction, which has already received regulatory approval, is expected to be completed by the end of the first half of next year.

In October, OCT Asia said it planned to sell some assets in the Suhewan project, including serviced apartments for senior citizens, Bulgari Residences apartments, and artist studios, for CNY2.4 billion to revitalize its assets, repay loans, and generate returns. The Bulgari Hotel Shanghai, named after Italian luxury fashion house Bulgari, has more than 80 rooms and suites, priced between CNY6,000 and CNY258,900 (USD828 and USD27,354) a night.

“The consideration for the assets is quite high,” said Zhao Huanyan, chief knowledge expert at Huamei Consulting Group. “The Covid-19 pandemic has greatly impacted the tourism and culture sectors, and OCT Asia is easing its pressure by selling assets.”

Even though hotels are not a major focus of Jinfeng Cements’ business, the consumption recovery trend has been obvious in terms of prices and occupancy rate this year, Zhao noted, adding that Bulgari is a great premium brand.

Jinfeng Cements bought the assets as the group believes this project has great growth potential. The development direction of the cooperation between the hotel management and Jinfeng Cements will depend on the pair’s upcoming plans after the deal is completed, Zhao pointed out.

Editor: Futura Costaglione