Blackstone To Pay Less for Chinese Property

HONG KONG (Reuters) – U.S. private equity firm Blackstone Group (BX.N: Quote, Profile, Research, Stock Buzz) has struck a deal to pay less for a bigger stake in a Shanghai commercial property, as the global financial turmoil further weighs on China’s real estate market.

Blackstone will buy 95 percent of the Changshou Commercial Plaza for 536.7 million yuan ($78.52 million) in cash from VXL Capital (0727.HK: Quote, Profile, Research, Stock Buzz), dowm from its original plan in June to take a 90 percent stake for 625.5 million yuan, the Hong Kong-listed company said in a statement on Thursday.

The deal will be closed by the end of October, VXL said. For statement please see here Blackstone had said last week it still aimed to complete property deals in Shanghai with VXL and Super Ocean Group, although a company official said valuations in China needed to come down. (US$1=HK$7.8=6.835 yuan) (Reporting by Donny Kwok; Editing by Anne Marie Roantree)