Blackstone Sells Its 95% Stake In Shanghai Mall - Source

Blackstone Group LP (BX) is selling its 95% stake in a Shanghai mall to New World Development Co. (0017.HK) for CNY1.46 billion ($228 million), a source with direct knowledge of the matter said late Tuesday.

Last week, Hong Kong-listed New World Development said it had agreed to buy the Channel One shopping mall from two sellers. It mentioned Hong Kong-listed VXL Capital Ltd. (0727.HK) as a seller but did not identify Blackstone.

The deal is scheduled to be completed in early November, the source said.

Blackstone purchased its interest in the mall for CNY1 billion in November 2008, the source added.

The mall, which opened in May 2009, comprises 42,000 square meters of retail space, New World Development said in its statement last week, adding that the acquisition will boost the company's position in the department store sector in east China.

Blackstone Group is halfway through fund raising for a yuan-denominated fund, Michael Sotirhos, senior managing director of the New York firm, said Tuesday in New York. Blackstone has said it held a first close on an undisclosed amount for its yuan fund in April, a vehicle which aims to raise CNY5 billion.

-By Esther Fung, Dow Jones Newswires; 86-21-6120-1200; [e-mail]