Exclusive | Blackstone buys Shanghai office and mall project from Singapore’s Mapletree Investments for US$1.25 billion
- US investment firm Blackstone’s acquisition is one of the largest property transactions in Shanghai
- Acquisition is the latest in a series of investments by overseas buyers
The Blackstone Group has bought an office and retail complex in Shanghai from Mapletree Investments of Singapore for about US$1.25 billion – the latest mega deal in China’s commercial property sector clinched by offshore investors.
The US investment firm, founded by the billionaire Steve Schwarzman, has completed the purchase of five office blocks and the mall, known as Mapletree Business City Shanghai and VivoCity Shanghai, comprising 270,000 square metres in the southwestern district of Minhang, according to two sources close to the deal.
The transaction underscores Blackstone’s confidence in China despite the softening real estate market and slowing economy.
On December 12, a consortium comprising Blackstone, US investment bank Goldman Sachs and Hong Kong-based property management firm Gaw Capital Partners bought 12 shopping centres in Hong Kong for HK$12.01 billion (US$1.5 billion).
Blackstone and Mapletree, an Asia-focused real estate investment and capital management company backed by Temasek, were not available for comment.
Mapletree undertook the 5.5 billion yuan development in 2012. The five-storey mall VivoCity Shanghai, named after VivoCity Singapore, officially opened last year.