Global private equity giant Blackstone has reportedly agreed to buy the Huamin Imperial Building, a Shanghai office tower said to be valued at about RMB7bn ($1.12bn).
Reuters reported the news on Friday after Blackstone co-founder and CEO Stephen Schwarzman announced the firm had agreed to buy an unspecified Shanghai office property.
“It’s a situation that became available as a result of some of the pressure among real estate developers that’s occurring in China,” Reuters quoted Schwarzman as saying at Blackstone’s Hong Kong offices.
The Huamin Imperial is a 50,000 sq m grade A office and five-star hotel complex in Shanghai’s Jing’an district that is 95 per cent complete, the report said, adding that Blackstone will finish the construction and lease it out.
Earlier this month Blackstone closed the largest real estate private equity fund in history by collecting $13.3bn of commitments in just 13 months.
LPs included China’s currency-reserve manager SAFE, which made a $500m commitment through the country’s $3.2tn foreign exchange reserve.
About 35 per cent of the fund’s capital has already been called, Blackstone said.
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