(Yicai Global) June 17 -- New York-based Blackstone Group has offered to pay a premium price of nearly HKD23.7 billion (USD3 billion) to buy an almost 55 percent stake in office developer Soho China after two years of market rumors of the deal.

The investment company would pay HKD5 (60 US dollar cents) per share, nearly 32 percent more than the closing price of Soho China's Hong Kong-listed stock on June 11, according to a statement the Beijing-based firm released yesterday.

However, the price was expected to be even higher. Reuters reported last August that it could be as high as USD4 billion.

Last year, the high-end real estate developer repeatedly said that it is negotiating with overseas investors about cooperation, but no consensus had been reached.

Founded in 1995, Soho China manages 1.3 million square meters of commercial property, mostly focusing on Beijing and Shanghai. It has sold more than CNY30 billion (USD4.7 billion) worth of assets since 2014.

Blackstone is very optimistic about the development of Soho China’s commercial assets in Beijing and Shanghai, as well as the excellent management team, according to the same announcement.

Blackstone will replace Pan Shiyi and his wife Zhang Xin as the largest shareholder, and the pair will have a combined 9 percent stake after the deal. The new controlling shareholder will choose new executive directors to replace the pair.

The US firm has confidence in China’s economy as it has invested in office buildings, shopping malls, and logistics assets in the country since 2008, the statement added.

Last year was not that great for the real estate company. In 2020, Soho China recorded a nearly 59 percent net profit slump to CNY543 million (USD84.6 million) from 2019, according to its earnings report. However, its revenue was 19 percent up to almost CNY2.2 billion (USD343 million).

Shares of Soho China [HKG: 0410] jumped more than 20 percent to HKD4.60, close to the offer price, this morning.

Editor: Emmi Laine, Xiao Yi