Private equity firm Blackstone Group has made an offer worth US$3.05 billion (HK$5 per share) to acquire Beijing-based office developer SOHO China.
”The offer price of HK$5.00 per share represents a premium of approximately 31.6% over the closing price of HK$3.80 per share as quoted on the stock exchange on the last trading day,” said Soho China in a statement.
Founded in 1995, SOHO China owns and operates an iconic portfolio of commercial properties in China totaling 1.3 million square meters.
The existing controlling shareholders will retain a 9% stake upon the completion of the transaction and SOHO China will remain listed on the Hong Kong Stock Exchange.
Blackstone said this transaction reinforces Blackstone’s commitment to investing in China, where the firm has been an active investor in real estate for over a decade.
Justin Wai, a Blackstone Real Estate Managing Director based in Hong Kong, said: “We’re thrilled to announce this investment in SOHO China to expand our footprint in China. China is a key market for our Asia business where we’ve built a diverse real estate portfolio across office, retail, logistics, and residential. We’re confident in China’s long-term potential and economic recovery, which is well underway particularly in the Beijing and Shanghai office markets. We look forward to working with the company’s founders and management in optimizing these iconic assets, and believe the joint Blackstone and SOHO China teams will be a powerful combination for expanding our investment activity in China.”
Blackstone’s key real estate investments in China include a majority stake in the largest logistics park in the Greater Bay Area; Westlink, a premium office and retail complex outside Shanghai; and the firm’s first multifamily investment in Shanghai, which was completed last year.
SOHO China’s portfolio of premium mixed-used assets is concentrated in Beijing and Shanghai. One is a newly Zaha Hadid-designed office tower in Lize, a new office submarket in Beijing.