Blackstone buys stake in Chinese mall group SCP for $400m


shopping mall_lrgPrivate equity giant Blackstone has reportedly agreed to pay about $400m for a stake in Chinese shopping mall group SCP, a deal which values the business at close to $1bn.

Blackstone is picking up a 40 per cent in the Shenzhen-based business, while Commercial Bank of China subsidiary ICBC Holdings is buying a six per cent stake according to Reuters, which cited a source with direct knowledge of the deal.

It said SCP would hold assets totalling in excess of $2bn after the deal.

The company currently manages 19 shopping malls, with tenants including Wal-Mart Stores Inc, Uniqlo and Chow Tai Fook Jewellery Group Ltd.

It has also partnered with Carlyle GroupMorgan Stanley and China Resources Vanguard on separate projects, Reuters added.

In August it emerged Blackstone was nearing the acquisition of European inner commercial retail developer Multi Corp.

The debt-ridden company saw its chairman and founder Hans van Vegge resign in July. The company had previously missed interest payments leading to banks seeking to write down and offload the debt.

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