Private Equity: Blackstone Makes Bid for Soho China

March 11, 2020 | Private Equity, Real Estate

Soho China could be next. Proving once again that the firm is fearless, private equity and alternative form Blackstone (NYSE: BX) is stepping up to the plate to bid for real estate in China.

Blackstone is bidding $4 billion to take over Hong Kong-listed property company Soho China.

The bid is just 78% of book value and about half what Sohu China was considering selling its property portfolio back in October.

Blackstone and Soho China

Chinese and Hong Kong property markets have been in a free-fall that has accelerated with the spread of coronavirus in the region.

In spite of this Blackstone is betting that the premier status of many of Shu Chinas office projects will be worth far more than they are offering right now. Sohu China’s occupancy rate in 2019 was 94% so the private equity buyers may indeed be buying a bargain at current prices.

Originally founded as a build and sell developer Soho China switched strategies to become a build and own real estate company back in 2012. The firm currently owns holds 1.4 million square meters of office space in Beijing and Shanghai for long-term investment.

Blackstone has a history of making big bets in difficult times that pay off huge off for their investors. They raised $7.1 billion in their Asian property fund late in 2019 so do not be surprised if this is not the last Asian property company they bid for during the current tumultuous environment in Asia.

Recent: Real Estate: Indian Real Estate 2019-Big Deals Largely Concluded by Foreign PE Investors

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.

Alt Insights

January 29, 2020

Venture Capital: The Kobe in “Bryant Stibel & Co”

Venture Capital: The Kobe in “Bryant Stibel & Co”

Latest Alternative Investment News

Alternative Investments: Activists Will Get Busy Soon, Says Tim Melvin

As companies become more undervalued as the economy slows because of shutdown orders across the United States, I expect that the pace of activist activity to increase. We should see…
Private Equity: Active Triage Happening at KKR and Other Funds
April 2, 2020     News, Private Equity

KKR & Co (NYSE: KKR) has shelved a plan to sell Singapore-based Goodpack, a Singapore based shipping containers, and logistics services.  They had bids for the company that was said…
FinTech: Kyash Closes $45M Series C Funding
April 2, 2020     FinTech, News

Kyash, a Japanese fintech startup aspiring to be a leading challenger bank, gained $45 million in a Series C funding. The round was co-led by Greenspring Associates and Goodwater Capital,…
Liquid Alternatives: Investors Shovelled $677B Into Money Market Funds In Scramble to Safety
April 2, 2020     Liquid Alternatives, News

Investors set up a record-breaking first quarter this year for inflows into U.S. money market funds. These funds gained from the massive risk-off sentiment that prevailed as investors realized the…

Scroll to Top