Blackstone Group Inc. has made an offer to buy commercial properties operator Soho China for 23.66 billion Hong Kong dollars (US$3.05 billion) as the U.S. private-equity firm seeks to build its real-estate investment portfolio in China.
Blackstone has offered to buy 4.73 billion shares for HK$5 each, a premium of nearly 32% to the last traded price of HK$3.80 a share, Soho China said late Wednesday.
Blackstone intends to retain the company’s listing status and will undertake a detailed strategic review of Soho China, including rationalizing its business activities and asset portfolio.
Established in 1995, Soho China holds and operates 1.3 million square meters of commercial properties in China.
The proposed acquisition provides an opportunity for Blackstone to invest in a company with portfolio of commercial properties in Beijing and Shanghai, Soho China said.
Blackstone has been an active investor in Chinese properties over the past decade, and owns approximately 6 million square meters of properties in China. Its real-estate portfolio includes hotel, office, industrial and residential properties in the U.S., Europe, Asia and Latin America.
Blackstone had approximately US$196 billion capital under management as of end-March.
Soho China’s shares are on a trading halt and are due to resume trading Thursday.
Goldman Sachs is acting as the financial advisor to Blackstone on the deal.