Blackstone renegotiates China deal

The Blackstone Group and Hong Kong-based VXL Capital have adjusted the size of a mainland development that Blackstone is acquiring and have altered the price and size of the stake being purchased.

The Blackstone Group and China property investor and financial services group VXL Capital have altered terms of a Shanghai investment deal.

In a statement, VXL said it had struck an 'amendment agreement' on Tuesday this week to change terms of a deal originally announced in June.

Blackstone and VXL have agreed to reduce the minimum lettable area of Changshou Commerical Plaza in Shanghai which VXL is developing. It is also reducing the mininum number of carparking spaces. In addition, Blackstone will pay less tax liabilities of the subsidiary company Moral High that owns the project. As a reuslt of the revised terms, Blackstone is paying RMB 536.7 million ($78 million) for a 95 percent stake in Moral High instead RMB 625.5 million for a 90 percent stake.

The Changshou Commerical Plaza is the main asset of Moral High. The deal is to complete before the end of the month.

Earlier this month, the South China Morning Post reported that the deal was off. However, VXL issued a statement refuting the claim.