Return to search

Blackstone in talks to sell RMB12.9bn China portfolio

The residential property developer China Vanke, in partnership with other investors, is planning to purchase a mega portfolio of Chinese commercial property assets from the Blackstone Group.

The Blackstone Group is in advanced talks to sell a majority stake in a commercial property portfolio in China to China Vanke, one of the largest residential developers in the country, for RMB 12.9 billion (€1.9 billion; $1.74 billion).

In a filing to the Hong Kong Stock Exchange, the developer said it, in partnership with other investors, is planning to acquire a 96.55 percent stake in a commercial property portfolio owned by the New York-headquartered private equity firm.

The details of the portfolio being purchased or the sectoral composition of the properties has not been disclosed. Blackstone could not be reached for comment.

China Vanke has said it would be investing approximately RMB3.9 billion via a wholly-owned subsidiary for the acquisition, and it has lined up investors to fund the additional RMB9 billion.

According to the filing, the negotiations for this deal commenced in January 2016. The developer further added that the firms have not yet entered into any legally binding agreement.

Blackstone has built a sizeable presence across sectors, including retail and logistics, in China over the years. In 2015 it formed a joint venture partnership with Vanke to buy logistics assets, and has reportedly acquired projects in Guiyang and Wuhan via the JV. This was preceded by the acquisition of a 40 percent stake in SZITIC Commercial Property (SCP), a shopping center owner, for $400 million.