Private equity company Blackstone Group said it would be purchasing a 40% stake in SCP Co, a China-based shopping mall owner. The world's largest alternative asset manager did not state how much it would be paying for the stake. Together with Blackstone, Hong Kong-based ICBC International Holdings would also be purchasing a 6% stake in SCP. This would put SCP's total asset values at over USD 2 billion.
Bloomberg reported that New York-based Blackstone had been looking to increase its property purchases in China. Increasing income and urbanization had fueled demand for retail real estate.
In a statement, Head of Blackstone's Real Estate Business in Asia Chris Heady said about the investment, "With China's economy increasingly driven by domestic consumption, the retail sector has tremendous potential. There are only a few high quality shopping mall managers in China and SCP is one of the most experienced."
SCP operates under the Incity, SCP Plaza and One City brands. It has 19 shopping malls in its portfolio.
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