(Yicai) Nov. 26 -- CapitaLand Group has reportedly denied media reports that the Singaporean real estate developer plans to sell a 70 percent stake in Pufa Tower in Shanghai.

The reports of the sale are untrue, CapitaLand told Jiemian News today. The builder remains committed to the Chinese market and plans to continue developing in the country, it added.

Citing insiders, The Paper reported yesterday that CapitaLand has reached a preliminary agreement with a fund under AEW Group to sell 70 percent of Pufa Tower for CNY1.8 billion (USD248.1 million), a 30 percent discount on the nearly CNY2.8 billion CapitaLand paid in 2019.

Located in Shanghai's Lujiazui financial district and completed in 2002, Pufa Tower has a total gross floor area of about 46,380 square meters.

Although it is classified as a Grade-A office building, industry insiders note that the tower no longer meets the standards in a number of regards, such as incomplete property ownership, insufficient floor area per level, and outdated facilities.

Its third-quarter vacancy rate was about 25 percent and monthly rentals were around CNY6 (83 US cents) per sqm.

CapitaLand is one of Asia's largest and most diversified real estate groups, with investments in over 260 cities in more than 40 countries. AEW is a leading property asset management firm, overseeing around USD84.4 billion of assets across North America, Europe, and the Asia-Pacific.

Editor: Futura Costaglione