This is an issue with a runtime of type WebSphere Portal v8.5.
Note the runtime composition, which includes "Java Runtime Environment v1.7".
From HCL Portal's point of view,
C:\Portal85\IBM\WebSphere\AppServer_ND\bin>managesdk -listAvailable -verbose
WAS_HOME C:\Portal85\IBM\WebSphere\AppServer_ND
CWSDK1003I: Available SDKs :
CWSDK1005I: SDK name: 1.7_64
- com.ibm.websphere.sdk.version.1.7_64=1.7
- com.ibm.websphere.sdk.bits.1.7_64=64
- com.ibm.websphere.sdk.location.1.7_64=${WAS_INSTALL_ROOT}/java_1.7_64
- com.ibm.websphere.sdk.platform.1.7_64=windows
- com.ibm.websphere.sdk.architecture.1.7_64=x86_64
- com.ibm.websphere.sdk.nativeLibPath.1.7_64=${WAS_INSTALL_ROOT}/lib/native/win/x86_64/
CWSDK1005I: SDK name: 1.8_64_bundled
- com.ibm.websphere.sdk.version.1.8_64_bundled=1.8
- com.ibm.websphere.sdk.bits.1.8_64_bundled=64
- com.ibm.websphere.sdk.location.1.8_64_bundled=${WAS_INSTALL_ROOT}/java
- com.ibm.websphere.sdk.platform.1.8_64_bundled=windows
- com.ibm.websphere.sdk.architecture.1.8_64_bundled=x86_64
- com.ibm.websphere.sdk.nativeLibPath.1.8_64_bundled=${WAS_INSTALL_ROOT}/lib/native/win/x86_64/
CWSDK1001I: Successfully performed the requested managesdk task.
C:\Portal85\IBM\WebSphere\AppServer_ND\bin>