Macquarie aims to sell China property - sources

SHANGHAI/HONG KONG Jan 5 (Reuters) - A real estate investment arm of Australia's Macquarie Group Ltd (MQG.AX) is putting one of its top-end properties in China on the block with a price tag of around 300 million yuan ($43.93 million), according to sources with direct knowledge of the plan.

Macquarie is trying to sell City Apartments (www.cityapartments.com.cn), a 16,000 square-metre residential development in downtown Shanghai, which the Australian bank fully acquired in 2005, said the sources who declined to be identified before a deal is made.

Macquarie decided to sell the project more than half a year ago with an initial price tag of around 26,000 yuan per square metre, but it failed to find a buyer at that price, said the sources.

More recently, Macquarie cut its price to less than 20,000 yuan per square metre. It hopes to lure an institutional buyer who will purchase the entire block in cash, said the sources.

A Chinese private equity house and a Singaporean firm have shown interest in a deal, although talks are still at a primary stage.

Macquarie could not be immediately reached for comment. ($1=6.829 Yuan)