Blackstone to exit first Chinese property investment

The sale represents the private equity firm's first exit from a real estate investment in China, Bloomberg reported, citing sources familiar with the transaction. The deal is scheduled for completion in early November.

Blackstone bought Channel 1 from VXL Capital for about RMB1 billion in 2008. VXL, a Hong Kong-based property investor and financial services company, retains a 5% stake in the property. During its ownership, Blackstone has increased occupancy at the 42,000-square-meter Channel 1 complex to more than 90%, one of the sources said.

The US buyout firm's property activities have largely focused on Australia so far this year. Blackstone purchased distressed shopping mall operator Centro Properties Group's US assets for $9.4 billion in February - supposedly its largest deal since the onset of the global financial crisis - and acquired Valad Property Group, another debt-ridden operator, for $883 million in August.

Last year, it assumed control of the $2.65 billion Bank of America Merrill Lynch (BoAML) Asian Real Estate Opportunities Fund.

Blackstone has also shuffled around its Asia team in recent months, with Ben Jenkins, Hong Kong-based senior managing director, due to depart the firm at the end of the year. He held the top regional management position until December of last year, when Blackstone elevated Michael Chae, a senior managing director in New York, to head of private equity in Asia, also based in Hong Kong.

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• Topics
• Real estate
• Exits
• Greater China
• China
• Real estate
• Trade sale
• The Blackstone Group