(Yicai Global) March 10 -- Shares in Soho China surged as much as 21 percent today after the Chinese office developer said it will sell prime properties in Beijing and Shanghai at a 30 percent discount and will use all of the proceeds to repay its debts.

Soho China’s share price [HKG:0410] closed up 8.97 percent at HKD1.58 (USD0.20) apiece. Earlier in the day it had hit HKD1.76.

Soho China will sell 32,000 square meters of properties in the heart of the two cities, the Beijing-based firm said today, half a year after US investment company Blackstone Group pulled out of a USD3 billion acquisition of the Chinese developer as they were unable to agree on terms.

There are nine projects, including both office buildings and residential apartment blocks, up for sale, it said. The company will offer real estate agents a 4 percent commission on the transaction price, much higher than the usual commission, it added.

Soho China has a debt ratio of 44 percent, which is low for a property developer, it said, adding that the firm wants to have the flexibility to tackle market changes and seek a healthy long-term development.

The office space rental market has been adversely affected by the Covid-19 pandemic and other factors in the last two years, Soho China said. Despite this, the occupancy rate of its properties was 83.4 percent on average as of the end of last year.

Editor: Kim Taylor