Blackstone abandons its $3 billion acquisition of real estate developer Soho China


Blackstone Group LP update

After Beijing’s antitrust review of the transaction was delayed, Blackstone cancelled its US$3 billion acquisition of Chinese real estate developer Soho China.

The condition of the US private equity group’s offer is to obtain the approval of the country’s competition regulator, and in a joint statement on Friday, Blackstone and Soho China stated that they will not be able to obtain antitrust approval within the agreed time frame.

this Offer of HK$5 per share The Chinese real estate group was valued at 26 billion Hong Kong dollars (3.3 billion US dollars) in June, but Beijing has previously extended its regulatory restrictions on the technology industry to other industries.

The news of the acquisition this summer immediately caused an uproar in China. Soho China founder Pan Shiyi and his wife Zhang Xin Accused of selling online and trying to use their money to escape the country.

The couple used to be high-profile entrepreneurial stars in China, and their futuristic office buildings are swirling on the skylines of Beijing and Shanghai. As China’s enthusiasm for its bourgeoisie declined, they adopted a low-key attitude and spent more time abroad.

Their relatively free ideals, a $15 million donation to Harvard University, and investments in American real estate, including holding shares in the General Motors Building in Manhattan, have also attracted criticism. Now, the couple must find a new way forward for the real estate group they founded more than 20 years ago.

Soho’s high-quality real estate portfolio in China’s top cities has become the core of Blackstone’s expansion in China. Stephen Schwarzman, the co-founder of the Blackstone Group, has been fighting for China’s political elite for many years, including a pledge of US$100 million to establish a prestigious international education project at Beijing’s Tsinghua University, which generates dozens of “Schwarzman Scholars” every year. “.

In recent years, the American group has invested heavily in office and residential properties and e-commerce warehouses in China. Blackstone’s logistics portfolio in China covers 53 million square feet, covering 23 cities.

In January of this year, the company announced that it would spend US$1.1 billion to acquire a large urban logistics park in the so-called Greater Bay Area near Guangzhou on the southern coast of China. This transaction expands Blackstone’s warehouse footprint in China by a third.

This year, it completed a $1.1 billion acquisition of a 70% stake in the South China Logistics Park developed by Guangzhou R&F. Guangzhou R&F, a real estate developer, faced severe pressure in the bond market this week.

In recent weeks, the Chinese real estate market has been shaken by liquidity pressures from real estate developer Evergrande, and the problem has spread to other developers, including Guangzhou R&F.

These problems are related to Beijing’s leverage restrictions on large Chinese developers that focus primarily on residential real estate, as the government tries to exercise tighter control over the real estate industry.


Source link