Boston-based AEW is seeking buyers for the HeXa International Plaza office tower and the mixed-use Jing IN International Center in Beijing, as well as the Shanghai Pudong Development Bank building in the Lujiazui business district, the people said, asking not to be identified discussing private matters. 

The two asset managers are anticipating that any sales would raise enough money to cover bank loans used to purchase the properties, which make up between 50% and 60% of the original prices paid, according to the people. 

Representatives for KKR declined to comment. AEW didn’t respond to a request for comment. 

KKR remains engaged in private equity business in China, where it has more than a dozen active investments, including TikTok owner ByteDance, mushroom producer Jiangsu Yuguan and private hospital operator Kareway Health, according to its website. Last year, KKR established its first yuan-denominated fund in China, raising capital from onshore investors including Ping An Capital Co.

Foreign buyers invested close to US$140 billion in office towers, warehouses, shopping malls and data centres in China over the past 15 years, according to data from MSCI Real Capital Analytics. But they have largely switched to selling mode as the country’s economic slowdown and an unprecedented supply glut cause rents and values to tumble. 

The downturn is especially painful for investors who made their bets near the 2019 peak, when the estimated market value of office assets was at a historic high.