Blackstone Group has effectively taken over control of Hong Kong-listed real estate developer Tysan Holdings by buying up 71 percent of the shares in the company, as the global private equity giant seeks easier access to China real estate opportunities.
According to an announcement in the Shanghai Securities News, Blackstone acquired 65.5 percent of the shares on January 3rd for HK$1.64 billion ($211.5 million), and then bought further shares on January 7th and 8th to acquire 71 percent of the company’s total equity.
Originally proposed in August last year, the buyout is seen as giving Blackstone an easier entry point for deals in China, as Tysan already has assets in Shanghai, Tianjin and Liaoning province.
Foreign Private Equity Rush into China
Blackstone has been among the most aggressive of the private-equity firms playing China’s real estate market in recent years, and the US firm followed up its Tysan acquisition by purchasing a 40 percent stake in Shenzhen mall developer SCP (formerly known as SZITIC Commercial Property Co) during November.
Besides Blackstone, many other fund management firms are turning to China in search of high-yield investments.
Regional player RRJ Capital of Hong Kong announced a US$50 million investment purchase of shares in Hong Kong-listed real estate developer CIFI Holdings (Group) Co during October, and US-based Carlyle Group announced a $400 million investment in China’s warehouse market during August, closely followed by Sam Zell’s Equity International buying into China warehouse developer the Redwood Group.