[photopress:realestate_napoleon.jpg,full,alignright]US private equity giant Blackstone has made its first foray into China’s property market, investing RMB1.1 billion yuan ($158.9 million) in a Shanghai commercial building.
The Shanghai Securities News reported Blackstone bought a 90% stake in the downtown building, from Hong Kong-based developer VXL Capital.
VXL acquired the property for around RMB585 million in 2006. It will retain a 10% stake in the property.
Blackstone’s relationship with China made international headlines last year when it announced that China Investment, the state-owned foreign investment firm, was making its first ever investment by putting $3 billion into the private equity group.
China Investment is tasked with managing part of the country’s soaring foreign exchange reserves, which hit $1.76 trillion at the end of April.
Why the illustration? Blackstone Group’s CEO Stephen Schwarzman gave an interview to the Wall Street Journalwith a compelling theme — Schwarzman is the Napoleon of private equity.
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