[photopress:property_Changshou.jpg,full,alignright]The Blackstone Group — a group of investors who might be likened to a pack of ravening wolves although this is because there is only one official aim, make money and the devil take the hindmost. There are many private equity companies like that so it is wrong to point the finger.
This epitome of American capitalism (which is handling major investments for the Chinese government) is about to make its first property purchase in China, acquiring a commercial property in Shanghai for RMB1.1 billion ($158 million).
The plaza is made up of a six story, 25,312 square meter shopping mall and commercial complex.
The purchase, made from Hong Kong-listed VXL Capital, will give Blackstone a 90% stake in Changshou Commercial Plaza, a development in Shanghai’s Putup district. According to China Securities News, VXL will retain a 10% stake in the property.
Blackstone seems to be increasing its activity and ties with China since the country’s mammoth sovereign wealth fund which is, as it were, the government’s money box, China Investment Corp., invested $3 billion into the private equity firm last year.
Source: Private Equity Real Estate