China Vanke Plans to Buy Shanghai Office Tower From Carlyle for $369 mln

China Vanke Co Ltd is seeking to buy Central Plaza in Shanghai from private equity firm Carlyle Group for around 2.46 billion yuan ($368.94 million),

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China Vanke Plans to Buy Shanghai Office Tower From Carlyle for $369 mln

HONG KONG: China Vanke Co Ltd is seeking to buy Central Plaza in Shanghai from private equity firm Carlyle Group for around 2.46 billion yuan ($368.94 million), Basis Point reported on Friday, quoting sources.

Vanke, the residential property developer at the centre of a high-profile power struggle, is planning to buy through its wholly owned private equity arm V Capital Ltd, with a $194 million loan facility, sources told Basis Point.

China’s top homebuilder will eventually hold only a 10 percent interest in the property after selling 90 percent to a third party, it said.

Vanke did not respond to an email seeking comment, while Carlyle declined to comment.

Central Plaza is a grade-A office tower in Shanghai’s central business district Huangpu, opposite to the city’s landmark Shanghai Grand Theatre.

Carlyle bought the building from Singapore-listed real estate fund Forterra Trust for $267 million in April 2013.

Meanwhile, Vanke is trying to fend off a hostile takeover by financial conglomerate Baoneng Group with a $6.9 billion deal with white knight Shenzhen Metro. However, the deal was opposed by major shareholders as it will dilute their shareholding.

($1 = 6.6678 Chinese yuan) (Additional reporting by Clare Jim; Editing by Sherry Jacob-Phillips)

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