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QIA pays $616m for stake in Hong Kong department store operator

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Qatar Investment Authority (QIA) has bought a 19.9% stake in Lifestyle International Holdings – a Hong Kong-listed retailer whose properties include SOGO department stores – for HK$4.78 billion ($616.2 million).

According to a regulatory filing, a vehicle owned by the Middle East sovereign wealth fund has agreed to buy 324.2 million shares in Lifestyle International at HK$14.75 apiece. The stock hasn't traded since September 24, when it closed at HK$14.60.

The seller is Real Reward, an entity jointly owned by Chow Tai Fook Enterprises - Hong Kong's largest jewelry and watch retailer - and the Lau family. Headed by Thomas Lau, CEO of Lifestyle International, the family remains the company's most significant shareholder via Real Reward and other wholly-owned vehicles.

Lifestyle International operates two SOGO stores in Hong Kong, one of which is in the process of relocating premises, and four outlets in mainland China under the Jiuguang brand. A second Shanghai complex is currently under construction and the company is looking to expand further into mainland China.

Net profit came to HK$2.67 billion in 2013, up from HK$2.26 billion the previous year. Turnover grew from HK$5.52 billion in 2012 to HK$5.96 billion last year.

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