The Blackstone Group is focusing on Chinese shopping malls.

Blackstone Group, a private equity firm based in the United States, is investing in China's retail industry by obtaining a 40% share in SCP Company Ltd, a Chinese mall developer and operator. qatar seal

According to Reuters, Blackstone will pay $400 million for the share, making it the firm's largest retail mall investment in Asia.

After the purchase, the equity firm anticipates SCP to have a total asset worth of more than $2 billion.
In a statement, Christopher Heady, Blackstone's Hong Kong-based head of Asia real estate, said, "Urbanization, growing salaries, and a developing middle class are all intact and will continue to develop over the medium term." "Not only the mall sector, but other real estate asset classes as well," says the analyst.

As part of the acquisition, ICBC International Holdings, the Industrial and Commercial Bank of China Ltd's overseas investment arm, will purchase a 6% stake.

SCP Chairman and Chief Executive Ding Li-ye told the Wall Street Journal that Blackstone's involvement as a strategic partner will "assist us expedite our network expansion in China and raise our real-estate management methods to an international standard."

Blackstone stated in April that it will raise $4 billion for a fund focused on China and Asian markets. According to the Wall Street Journal, the firm made an offer in August to buy Chinese property developer Tysan Holdings Ltd. for $322 million.

SCP, based in Shenzhen, is an unlisted developer that owns and runs 19 malls in China, with a 95% occupancy rate. According to the Wall Street Journal, tenants include trendy merchants H&M and Uniqlo, as well as Wal-Marts.
Analysts believe small and mid-sized real estate enterprises are looking for alternative funding sources as China's banks tighten lending conditions.

According to Reuters, the Blackstone deal brings overall private equity investments in China's property industry to $1.2 billion, up 53 percent from last year's total.
The Asia Pacific region is on course to set a new high for direct commercial property investments this year. In the third quarter, the region saw a 33 percent rise in direct investment over the previous year.

Brookfield Property Group makes an investment in the Shanghai Group.

Brookfield Property Partners has committed to invest $750 million in China Xintiandi, a wholly owned subsidiary of Shui On Land, a Hong Kong developer.

According to a company announcement, China Xintandi manages Shui On Land's portfolio of office and retail assets in Shanghai, which was established in 2012. Brookfield would own a 22 percent ownership in China Xintiandi as a result of the investment.

In addition to the acquisition, the Canadian firm hopes to obtain up to $500 million in other commercial property acquisitions in China.

"The cornerstone investment in China Xintiandi provides Brookfield exposure to high-quality assets in Shanghai while providing for future expansion through asset purchases and strategic collaborations," said Bill Powell, Brookfield's Australasian chief executive. "China is a critical market for Brookfield's long-term expansion."
China Xintiandi's primary property is the "iconic" Xintiandi shopping and entertainment complex in Shanghai, as well as the nearby office complexes Shui On Plaza and Corporate Avenue 1 and 2, according to the business. It also contains Shui On Land's "The Hub," a 200,000-square-meter mixed-use building in the heart of Hongqiao Transportation.

Brookfield Property Partners has a global portfolio of over 300 office and retail assets totaling over 250 million square feet. They also own over 20,000 multifamily units, 64 million square feet of industrial space, and an 18 million square foot office development pipeline.
Brookfield raised $4.4 billion earlier this year for a fund focused on commercial real estate in North America, Brazil, Europe, and Australia.

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