HONG KONG: Blackstone Group LP is selling its stake in Shanghai's Channel 1 shopping mall to Hong Kong's New World Development Co for 1.46 billion yuan (RM726 million), marking its first exit from a real estate investment in China, a source familiar with the matter said.

Blackstone holds a 95% stake in the mall, which it bought vacant for about one billion yuan in 2008, the source said.

New World, controlled by Hong Kong tycoon Cheng Yu-ting, said in a statement last week the acquisition would strengthen its influence in Shanghai and bolster its retail business in Eastern China.

New World's statement did not name Blackstone as the seller.

Occupancy of the 42,000 sq m (452,000 sq ft) property has since risen to more than 90%. The deal is scheduled to close in early November, the source added.

Blackstone declined to comment. The source declined to be named because he was not authorised to speak to the media. — Reuters

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