[Asia Economy Reporter Park Byung-hee] Blackstone, the world's largest private equity firm, is acquiring Soho China, a Chinese private real estate developer, according to a report by Chinese economic outlet Caixin on the 17th (local time).
Soho China is listed on the Hong Kong Stock Exchange, and in a notice released the previous day, it announced that its founder and largest shareholder, Chairman Pan Shiyi and his wife, have signed a contract to sell 54.93% of the company's shares to Blackstone. The sale price is 11.769 billion yuan (approximately 2.065 trillion KRW). Earlier, Bloomberg reported that Blackstone proposed acquiring Soho China at 5 Hong Kong dollars per share, marking Blackstone's largest-ever investment in the Chinese real estate market.
After the transaction, the Pan couple's stake will decrease from 63.93% to 9%. The Pan couple will step down from the company's board, and Blackstone will exercise management control.
Soho China is a company known for constructing and operating landmark buildings with sophisticated designs in prime locations of China's largest cities, Beijing and Shanghai, such as Wangjing Soho and Sanlitun Soho in Beijing. Wangjing Soho, which resembles several rounded mountains rising, is a work by world-renowned architect Zaha Hadid, who also designed Seoul's Dongdaemun Design Plaza.
Soho China's rental income last year was $1.538 billion, down 16% from 2019, due to the significant contraction of the office rental market caused by the COVID-19 pandemic.
The Pan couple has recently had a strained relationship with Chinese authorities. Hong Kong's Ming Pao reported that Pan Shiyi's eldest son, Pan Luoyi, is currently abroad while wanted for allegedly making statements that dishonored the Chinese soldiers who died in the June border clash between the Chinese and Indian armies last year.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
