Macau gambling tycoon Stanley Ho and LVMH Group have reportedly sold their stakes in luxury Chinese shopping mall L’Avenue Shanghai to private equity investor Blackstone.
According to Chinese media reports over the weekend, Ho’s STDM business, which owned 50 per cent of the retail and office tower, and LVMH were dissatisfied with the return on their two year old investment.
Shanghai-based online news service thepaper.cn last week reported the transaction cost exceeded RMB5 billion (US$806 million). The development commenced in 2009 with an estimated value of $500 million. It opened in 2013.
Ho and L Real Estate, part of the Louis Vuitton Moet Hennessey Group, bought the land on which the development was built, selling it in 2007 and taking a joint interest in the complex.
Some 20 retail tenancies in the shopping part of the complex stock LVMH brands, including Louis Vuitton, Dior and Fendi. But the mainland luxury market has been affected by the government’s clampdown on graft and gift giving.
Neither Blackstone or LVMH Group have confirmed or denied the deal as yet.