New World Development (HKG:0017) is selling the office portion of its Shanghai K11 property on Huaihai Middle Road for 2.85 billion yuan, China's state-owned Securities Times reported Tuesday.

Shares of the company edged about 2% lower in the wake of the report.

The sale covers floors 11 through 58 of the tower, spanning about 81,000 square meters, the report said, citing a commercial property agency in Shanghai.

The retail podium, K11 Art Mall, occupying floors 1 to 10, is not part of the deal, the report said.

The property, formerly called Shanghai Hong Kong New World Tower, was completed in 2002 and underwent a 400 million yuan renovation in 2013 to become the mainland's first K11-branded shopping mall, the report said.

New World recently announced in late June that it has refinanced about HK$88.2 billion in offshore unsecured debt, including existing bank loans, through a new multi-tranche term loan facility and aligned agreements with other lenders.

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