Back to top

Analyst Blog

In an effort to expand its operations in China, Blackstone Real Estate Partners Asia fund  -- The Blackstone Group L.P.’s (BX - Analyst Report) real estate arm -- is planning to acquire Hong Kong listed construction company, Tysan Holdings Limited. Blackstone plans to purchase Tysan for about $322.6 million (2.5 billion Hong Kong dollars). Additionally, Barclays PLC (BCS - Analyst Report) is expected to act as an advisor for Blackstone on the Tysan bid.

Blackstone’s real estate arm was formed in 2013. Following its formation, this would be the first investment by the company’s first Pan-Asia property fund. Moreover, the company is targeting $4 billion worth of investment. Additionally, it plans to focus mainly on Australia as well as Asian countries that include China, India and Japan.

Blackstone has already made investments in the real-estate development business in various cities of China that include Shanghai, Dalian, Nantong and Wuhan.

On the other hand, Tysan Holdings is mainly engaged in the development and investment in residential properties in the cities of Shanghai, Tianjin and Shenyang. Moreover, it has a construction business in Hong Kong along with two service residence projects in Shanghai.

Earlier, between 2010 and 2013, the Chinese government had resorted to stringent rules and regulations in the housing sector. However, due to the fragile growth of the Chinese economy, the real estate sector turned into a profitable investment, thus resulting in relaxation in the real-estate rules by Chinese policy makers. Further, this led to an escalation of property prices in China. These factors made investment in China more lucrative, thereby attracting foreign investments in the real-estate sector.

Recently, UBS AG (UBS - Analyst Report) announced its plan of entering into an agreement with the district government in Shanghai and an insurance company in order to start a public-housing investment fund. This fund would raise money from both public and private investors in an attempt to assist China to build low-cost houses.

The overseas investment by Blackstone in China is expected to further expand its operations in the Chinese territory. Moreover, this acquisition is anticipated to augment its top line and improve its financials going forward.

Blackstone currently carries a Zacks Rank #2 (Buy). In the same sector, Fortress Investment Group LLC (FIG - Snapshot Report) is also performing well with the same Zacks Rank.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%