Central Real Estate Company Halts Stake Sale to US Private Equity Fund

[Asia Economy Reporter Ji Yeon-jin] Chinese renowned private real estate developer Soho China’s plan to sell its shares to the US private equity firm Blackstone has fallen through, according to Chinese-language media on the 11th.

According to reports, Soho China announced last night that, by mutual agreement, Blackstone will halt the acquisition of Soho China shares. The collapse of the Soho China sale occurred amid an investigation launched last month by China’s State Administration for Market Regulation based on the country’s antitrust law regarding Blackstone’s acquisition of Soho China.

The Hong Kong South China Morning Post (SCMP) reported, “The antitrust investigation into the Soho China acquisition came as relations between China and the US deteriorate, with the Biden administration warning US companies of investment risks citing increased control over Hong Kong and regulations across sectors such as e-commerce and real estate.”

Initially, Soho China announced in June that a contract had been signed to sell 54.93% of the company’s shares to Blackstone for 11.769 billion yuan (approximately 2.1 trillion won), held by founder and largest shareholder Chairman Pan Shiyi and his wife. Blackstone planned to actively enter the Chinese real estate market through the acquisition of Soho China.

Soho China is a company that built and operated landmark buildings known for their sophisticated designs in prime locations of China’s largest cities, Beijing and Shanghai, such as Wangjing Soho (望京 Soho) and Sanlitun Soho (三里屯 Soho) in Beijing. Wangjing Soho, which resembles several rounded mountains rising, is also the work of world-renowned architect Zaha Hadid, who designed the Dongdaemun Design Plaza in Seoul.