Blackstone buys Chinese Logistics business for $38m

The private equity firm has done deals with Dongbai, which has interests in commercial and logistics real estate, before. In 2018, it bought an 80% stake in another Guangdong logistics project for about RMB275 million. This was followed a year later by the purchase of a Tianjin-based logistics asset for RMB350 million.

 

Dongbai acquires projects in key transport nodes and seeks quick exits once they reach maturity. In the past two months, it has closed four deals, adding 530,000 square meters of facilities to its existing pipeline of one million sqm. The most recent purchase is Zhaoqing Pengcheng Storage in Guangdong - for RMB66 million - which owns 109,800 sqm of storage space.

The Blackstone transaction has received shareholder approval, but the final price will be adjusted based on the net asset value of Foshan Ruixin on the last working day prior to the settlement date. Blackstone will buy 51% on the day of settlement, according to a statement.

Foshan Ruixin recorded revenues of RMB4 million in 2018 with a net loss of RMB1 million. For the first nine months of 2019, revenue and net losses reached RMB6.5 million and RMB6.26 million, respectively. The size of the storage facility has not been disclosed.

Dongbai is the largest shopping mall operator in Fujian province. The bulk of its revenue - which came to RMB2.7 billion in the first nine months of 2019 - comes from commercial real estate. The logistics contribution is relatively small.

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• Topics
• Greater China
• Buyouts
• Industrials
• Real estate
• Infrastructure
• China
• Logistics
• The Blackstone Group