Warburg Pincus fights with Blackstone over Troubled real Estate

2022-06-07 0 By

At the same time, the two private equity giants warburg Pincus and Blackstone have also opened their mouths.01 Real estate companies’ assets concentrated transaction, completely opened the curtain.On January 25th shimao’s list of assets for sale was revealed.In this list, we can see that Shimao has listed 34 projects, mainly complex commercial offices, most of which are the core projects of Shimao.Previously, Shimao has successfully finalized 3 transactions, selling Shanghai Jiushi Shanghai Huangpu Road land parcel for 1.06 billion yuan, at a discount of 70%;1.845 billion yuan transferred 26.67% equity of Guangzhou Asian Games City, which is a neutral price;A loss of about HK $770m was recognised on a Hk $2.086bn sale of a Hong Kong project.With more sellers and fewer buyers, assets are lucky to be able to sell.After all, there are plenty of defaults, rollovers, cheaper assets and better bundles of assets that may already be circulating.Earlier, Aoyuan property for HK $900 million transfer of its three companies.Sunac is selling stakes in two projects in wuhan at a discount of 4.1 per cent.Pattern annual loss of 56 million yuan sold ningbo project.In addition to Shimao, Vanke Overseas, Shenzhen International Holdings, Capital Group, Zhongtian Financial and other enterprises also issued asset sales announcements.Once known as “contracting nearly half of the real estate in Guizhou”, Zhongtian Chengtou not only sold its assets cheaply, but also sold the company as a whole. So far, it has only received 1.58 billion yuan of 4.539 billion yuan.The dispute is now being taken to court.Although Vanke shouted “live”, last year’s life did not feel better, but compared with the “broken arm to survive” out of danger real estate enterprises, much more comfortable.On January 25, Vanke Overseas sold a property in London valued at about £1.25, a premium of about £7m.Under the policy relaxation and promotion, central state-owned enterprises took the lead as the “white knight”.For example, Shanghai Real Estate, which took over shimao’s Shanghai project, is a subsidiary of the Shanghai State-owned Assets Supervision and Administration Commission.Policy bottom, foreign institutions are also ready to move.According to an investment officer of the big five banks, some foreign investors have recently built positions in China and are ready to invest in specific property companies.Warburg Pincus, a private-equity firm, and Blackstone have been the first to enter the Chinese market.Late last year, private equity giant Warburg Pincus announced it had completed a $2.8 billion (17.8 billion yuan) fundraising for its Warburg Pincus Asia Real Estate Fund.It is one of the largest ipo real estate funds in the world and the second largest opportunistic real estate fund in Asia.Blackstone already plans to launch a second Asian m&a fund in 2020, with a minimum of $5 billion, more than double the size of the first.Separately, Blackstone recently promoted Justin Wai, its Hong Kong-based managing director, to head of real estate for Greater China.Justin Wai will be responsible for expanding Blackstone’s portfolio of logistics, office and real estate assets in China’s first-tier cities.Although Warburg Pincus is the earliest PE giant to enter China, it lags behind Blackstone in real estate management business.Known as the “active investor in China’s real estate”, Blackstone has been making frequent moves in the domestic real estate investment market and has long been a champion of the sale of assets by domestic real estate enterprises.In October 2020, Blackstone first acquired the fourth project of Shanghai Xiangyi Garden Phase III of Sunac with a total price of 1.2 billion YUAN.In 2021, we won the Project of R&F Comprehensive Logistics Park of Guangzhou International Airport owned by R&F Real Estate twice.Although blackstone group’s privatization deal with SOHO China failed in 2021, it hit its investment confidence in mainland China.But try the appointment of Justin Wai, which also marks the resumption of blackstone’s investment confidence in mainland China, will open a new round of heavy positions.Warburg Pincus, which lags behind Blackstone, looks set to compete with blackstone in Asia.In 2021, Warburg Pincus and Shanghai Jinhe Investment Group Co., Ltd. jointly established Jinhe Asset Management Co., Ltd. to focus on urban renewal and redevelopment.Jinhe Asset Management has acquired base, Tulu and other serviced apartment projects after its establishment. At present, the platform manages 19 self-owned properties in the core areas of Shanghai and Beijing, with an asset management scale of more than 15 billion yuan and a target of 50 billion yuan within 3 years.”This ipo is an important milestone for us in the Asian property investment sector and further cements our position as the ‘partner of choice’ for property developers and operators,” said Jian Pan, Warburg Pincus partner, head of Asia Pacific real estate investment and president of Southeast Asia.We are looking forward to leveraging warburg Pincus’ experience, track record and strong investment ecosystem in Asia.”http://www.edijin.com to gold