Blackstone considers $1.5b acquisition of Shanghai commercial property

Photo: Bloomberg

Blackstone Group LP is considering an acquisition of Chamtime Plaza, a Shanghai commercial property complex, in a deal that could be worth more than 10 billion yuan ($1.5 billion), people familiar with the matter said.

The private equity firm is in early stages of studying the potential purchase, according to the people, who asked not to be identified because the information is private. Chamtime Plaza, which includes a shopping mall and five office towers, is located around a tech hub in the Zhangjiang area of eastern Shanghai’s Pudong district.

Foreign buyers are increasing their presence in the Chinese commercial property market, taking advantage of a deleveraging drive squeezing domestic companies. Investment in Chinese commercial real estate rose 9.5 percent in 2018 to hit a record 296 billion yuan, with about one-third of transactions coming from overseas investors, according to Cushman & Wakefield.

In November, Singapore’s CapitaLand Ltd. and sovereign fund GIC Pte agreed to acquire Shanghai’s tallest twin towers, located along the Huangpu River in the North Bund, for 12.8 billion yuan. Last year, Blackstone bought the VivoCity Shanghai mall and adjacent office towers from Singapore’s Mapletree Investments Pte for $1.2 billion including debt, Bloomberg News reported at the time.

Chamtime Plaza has a total construction area of 320,000 square meters (3.4 million square feet), according to the website of its owner, Chinese developer Changjia Group. No final decisions have been made, and there’s no certainty the deliberations will lead to a transaction, the people said.

A spokeswoman for Blackstone declined to comment, while calls to Shanghai-based Changjia Group’s general line went unanswered.

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Bloomberg

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.