The Blackstone Group Inc. (NYSE:BX) completed the acquisition of 24.5% stake in CityOn Shopping Center in Zhengzhou, China from Taubman Centers, Inc. for $89 million.
December 30, 2019
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The Blackstone Group L.P. (NYSE:BX) entered into an agreement to acquire 24.5% stake in CityOn Shopping Center in Zhengzhou, China from Taubman Centers, Inc. (NYSE:TCO) on February 14, 2019. In related deals, The Blackstone Group L.P. (NYSE:BX) agreed to acquire 50% of Taubman's stake in CityOn Shopping Center in Xi'an, China, and Starfield Hanam Shopping Center in Hanam, South Korea. For all the three shopping centers, Blackstone will pay $480 million in cash and additional earn-out of $50 million, based on 2019 performance of the assets. In addition, $140 million is expected to be returned to Taubman as a result of a refinancing of CityOn.Xi'an, and CityOn.Zhengzhou. Net proceeds from the Blackstone sale are expected to be approximately $315 million, following the allocation of third-party debt to partner, taxes, closing costs and closing allocations. Post completion, Taubman Centers will hold 24.5% stake in CityOn Shopping Center in Zhengzhou, China. Taubman Centers, Inc. will remain the partner responsible for the joint management of CityOn Shopping Center in Zhengzhou, China.
The transaction is subject to customary closing conditions. As of February 14, 2019, the transaction was approved by the Board of Directors of Taubman. The transaction is expected to close throughout 2019. The transaction is expected to close around year-end 2019. Through this transaction Taubman expect's to simplify the capital structure, repatriate cash, reduce debt and increase liquidity. The deal will result in annualized earnings accretion of approximately $0.08 to $0.1 per share. JPMorgan Chase & Co. (NYSE:JPM) acted as a financial advisor to Taubman. Anthony King, Jonathan Hwang, Jenny Qi, Lin Ma, Cynthia Mo, Meredith Jones, William Smolinski, Kelli Rivers, Étienne Renaudeau and Preston Miller of Simpson Thacher & Bartlett LLP acted as legal advisor to The Blackstone Group L.P.
The Blackstone Group Inc. (NYSE:BX) completed the acquisition of 24.5% stake in CityOn Shopping Center in Zhengzhou, China from Taubman Centers, Inc. (NYSE:TCO) for $89 million in December 2019. Taubman Centers, Inc. received net proceeds of $47.5 million, following the allocation of property-level debt, taxes and transaction costs, which were used to pay down debt.
Blackstone Inc. is an investment firm. The Company's asset management business includes investment vehicles, which is focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, and secondary funds. The Company operates through four segments: Real Estate, Private Equity, Credit & Insurance, and Hedge Fund Solutions. Its Blackstone Real Estate Partners (BREP) business makes investments in logistics, office, rental housing, hospitality, and retail properties, as well as in a variety of real estate operating companies. The Private Equity segment includes Blackstone Capital Partners, Blackstone Energy Transition Partners, Blackstone Capital Partners Asia, and Blackstone Core Equity Partners. The Credit & Insurance segment includes Blackstone Credit and Blackstone Insurance Solutions (BIS). The Hedge Fund Solutions segment includes Blackstone Alternative Asset Management and GP Stakes businesses.
The Blackstone Group Inc. (NYSE: BX) completed the acquisition of 24.5% stake in CityOn Shopping Center in Zhengzhou, China from Taubman Centers, Inc. for $89 million.
BLACKSTONE INC. 
