LaSalle Investment Management is reported to be buying the Galleries shopping centre in Bristol for £32m.
InfraRed Capital bought the shopping centre for £50m eight years ago for its redevelopment potential, the Sunday Times reported.
The drop in price highlights the difficulties faced by retail landlords.
The Galleries has reportedly struggled since shopping centre rival Cabot Circus opened in central Bristol in 2008.
Drapers has contacted InfraRed Capital and LaSalle Investment Management for comment.