Blackstone Said in Talks With CIC to Sell London Office Park
Blackstone (BX) Group LP is in talks to sell a west London office development to China Investment Corp., the sovereign-wealth fund that holds stakes in banks and brokerages, a person with knowledge of the matter said.
Chiswick Park, a 33-acre (13-hectare) site that includes buildings leased to PepsiCo Inc., Tullow Oil Plc and Walt Disney Co., would be sold for about 800 million pounds ($1.3 billion) if the talks result in a deal, said the person, who asked not to be identified because the discussions are private. CIC didn’t reply to an e-mail sent to its Beijing-based media office seeking comment. Blackstone spokeswoman Christine Anderson declined to comment.
Chinese investment into Europe, including real estate purchases, is forecast to exceed $1 trillion by 2020, New York-based economic research company Rhodium Group LLC said in a report last year. Blackstone, the world’s biggest manager of alternative assets such as property, bought Chiswick Park in 2011 for 480 million pounds and has since developed an office building and started construction on a second.
A CIC purchase would add to a wave of recent Asian investment in London. Hong Kong’s banking regulator bought 50 percent of a project in London’s luxury-shopping district for more than 100 million pounds last week. Oxley Holdings Ltd., a Singapore-based property developer, agreed earlier this month to buy an east London site where it plans to build 3,400 homes.
The Financial Times reported the talks earlier today.
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