VXL Capital Limited announced Monday that the U.S. based Blackstone Group bought a 90 percent stake in the Changshou Commercial Plaza for 1.1 billion yuan, according to Tuesday's Oriental Morning Post.
VXL Capital acquired the Changshou Commercial Plaza in September 2006 for 460 million yuan. The property increased in value by more than 50 percent during the past two years, now boasting a value of 700 million yuan.
"(Selling the property) can not only make profits but also add to their cash flow," said Remy Chan, regional director of Asia Pacific at Jones Lang LaSalle Inc.
According to Chan, Blackstone was willing to take over the Changshou property at such a high price because of the mass influence of the U.S. subprime mortgage crisis and the Chinese government's restrictions regarding foreign investments.
"It's a must for U.S. and European investors to acquire high-quality assets if they want to stay in business," Chan noted.
"China's rapid economic development makes it one of the best investment destinations."
For more details, please read the full story in Chinese (http://www.dfdaily.com/node2/node27/node120/userobject1ai93309.shtml).
(China.org.cn by Yan Pei, June 17, 2008)
