In an effort to expand its operations in China, Blackstone
Real Estate Partners Asia fund --
The Blackstone Group L.P
) real estate arm -- is planning to acquire Hong Kong listed
construction company, Tysan Holdings Limited. Blackstone plans to
purchase Tysan for about $322.6 million (2.5 billion Hong Kong
) is expected to act as an advisor for Blackstone on the Tysan
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Blackstone's real estate arm was formed in 2013. Following its
formation, this would be the first investment by the company's
first Pan-Asia property fund. Moreover, the company is targeting
$4 billion worth of investment. Additionally, it plans to focus
mainly on Australia as well as Asian countries that include
China, India and Japan.
Blackstone has already made investments in the real-estate
development business in various cities of China that include
Shanghai, Dalian, Nantong and Wuhan.
On the other hand, Tysan Holdings is mainly engaged in the
development and investment in residential properties in the
cities of Shanghai, Tianjin and Shenyang. Moreover, it has a
construction business in Hong Kong along with two service
residence projects in Shanghai.
Earlier, between 2010 and 2013, the Chinese government had
resorted to stringent rules and regulations in the housing
sector. However, due to the fragile growth of the Chinese
economy, the real estate sector turned into a profitable
investment, thus resulting in relaxation in the real-estate rules
by Chinese policy makers. Further, this led to an escalation of
property prices in China. These factors made investment in China
more lucrative, thereby attracting foreign investments in the
) announced its plan of entering into an agreement with the
district government in Shanghai and an insurance company in order
to start a public-housing investment fund. This fund would raise
money from both public and private investors in an attempt to
assist China to build low-cost houses.
The overseas investment by Blackstone in China is expected to
further expand its operations in the Chinese territory. Moreover,
this acquisition is anticipated to augment its top line and
improve its financials going forward.
Blackstone currently carries a Zacks Rank #2 (Buy). In the same
Fortress Investment Group LLC
) is also performing well with the same Zacks Rank.