Private equity firm Blackstone Group has canceled a property deal with VXL Capital, for the $160 million acquisition of a commercial building in Shanghai.
Blackstone was originally planning to buy four buildings in Shanghai, for up to $1 billion, but has ditched the acquisition of a 90% stake in Changshou Commercial Plaza.
The report said that the seller, Hong Kong-based VXL Capital, and the American equity firm could not agree on the price, reported to be around $160m. VXL apparently bought the entire property in March 2006 for $86 million.
It is also not clear whether Blackstone will agree to buy the Skymall Shopping Centre in Shanghai from Chinese developer Super Ocean Group.
The global financial crisis and national forecasts that Chinese property prices will slide may have added to Blackstone’s withdrawal.
Source: Biz Update