Blackstone is to pay HK23.7bn (€2.54bn) to buy a 55% stake in Hong Kong-listed Chinese developer Soho China.
Soho China said Blackstone would offer HK$5 per share – or a 31.6% premium on Soho’s last traded price - to acquire around 5.2bn shares on issue.
The husband-and-wife founders, Pan Shiyi and Zhang Xin, currently own almost 64% of the company’s shares on issue and will retain a 9% stake upon completion of the transaction. Soho China will remain listed.
Founded in 1995, SOHO China owns and operates a portfolio of commercial properties in China totalling 1.3m sqm.
In a statement, Blackstone said the transaction reinforced its commitment to investing in China, where the firm had been an active investor in real estate for more than a decade.
Justin Wai, a Blackstone Real Estate managing director based in Hong Kong, said the investment in Soho China enabled Blackstone to expand its footprint in China.
“China is a key market for our Asia business, where we’ve built a diverse real estate portfolio across office, retail, logistics, and residential,” he said.
Blackstone was confident in China’s long-term potential and its economic recovery, which was well underway, particularly in the Beijing and Shanghai office markets.
Last November, Blackstone purchased a 70% stake in the 1.2m sqm logistics park, Guangzhou International Airport R&F Integrated Logistics for US$1.1bn (€903.4m).
Its other key real estate investments in China include Westlink, an office and retail complex outside Shanghai; and the firm’s first multifamily investment in Shanghai, which was completed last year.
To read the digital edition of the latest IPE Real Assets magazine click here.