Fosun Buys Half-stake In Shanghai’s Bund Finance Center For Nearly US$1bil
CHINA – Hong Kong-listed conglomerate Fosun International has signed a deal to buy back a 50 percent stake in the Bund Finance Center (BFC) for 6.34 billion yuan (US$995 million), reported Forbes magazine on Thursday afternoon (24 March, SGT).
Situated along Shanghai’s Huangpu River, the commercial property is an iconic landmark that integrates various components – office, retail, hotel, health, entertainment, art, and tourism.
Spanning 420,000 sq m, the mixed-use development features an arts centre known for its moving veils of bamboo-like tubes in the exterior and designed by renowned architect Norman Foster. The entire waterfront complex is fully occupied, with the shopping centre leased by top global brands including French fashion house Lanvin.
The company, which is controlled by billionaire Guo Guangchang, is taking full ownership of the commercial property in Shanghai as its earnings recovered.
Fosun International – whose interests include property, hospitality, insurance, fashion, mining, pharmaceuticals, and steelmaking – announced that its net profit jumped by 26 percent to 10.1 billion yuan in 2021 on an annual basis, while revenue climbed 18 percent to 161.3 billion yuan.
Previously, the conglomerate divested 50 percent of its stake in the commercial property in 2016 in a bid to increase liquidity and enhance financial flexibility.
The acquisition “enables the group to build a commercial complex project more in line with the group’s ecosystem,” said Fosun chairman Guo in a statement earlier this week.
“In the pandemic era, global political and economic uncertainties have increased drastically, posing severe challenges to capital markets, supply chain management, and production and operations of enterprises.”
“Fosun responded effectively by leveraging on its industrial capabilities, proactive strategic and swift tactical adjustments,” he added.