Blackstone buys stake in mall firm

Szitic Commercial Property Co Ltd, one of China's largest shopping mall developers and operators, said Monday that private equity giant The Blackstone Group LP and ICBC International, the Hong Kong unit of Industrial and Commercial Bank of China Ltd, will take stakes in the company.

In an online statement, SCP said that Blackstone will take a 40 percent stake and ICBC International will take 6 percent. The value of the transaction wasn't disclosed.

SCP's total asset value will exceed $2 billion after the deal, the company said.

Blackstone, the world's biggest manager of alternative assets including private equity and real estate, manages assets valued at $69 billion. Its holdings in shopping malls cover Asia, Europe and the United States.

Ding Liye, chairman and chief executive officer of Shenzhen-based SCP, said that he is pleased Blackstone and ICBC International have become shareholders.

"The investment is of special significance to us, in that it's the recognition of our efforts in the development and operation of premium commercial properties across the country over the past decade," Ding said in a press release on SCP's website.

Ding said that Blackstone and ICBC International will increase SCP's competitiveness in the commercial property market, building on the former's experience and investment track record and the latter's resources and comprehensive financial services.

The purchase is Blackstone's largest mall investment in Asia to date. The deal will be carried out by Blackstone Real Estate Partners Asia.

According to sources close to the deal, the New York-based company is investing about $400 million in SCP.

An employee at SCP who declined to be identified said that no company officials were immediately available for comment.