The Scoop
BlueFive Capital, the Abu Dhabi-based private equity firm founded by former Investcorp executive Hazem Ben-Gacem, is in talks to acquire $500 million in Chinese real estate assets including the Four Seasons Beijing, according to two people familiar with the matter.
The planned deal includes the luxury hotel, an adjacent mall, gym, and parking facility owned by Chinese businessman Liu Changle. If completed, the assets would be syndicated to a group of primarily Saudi investors, the people said.
It would mark one of BlueFive’s largest transactions since its launch last year. The firm raised $2 billion for its debut fund last month, making it one of the biggest Gulf-focused funds.
BlueFive declined to comment, a representative for Liu didn’t immediately respond to a request for comment.
Know More
The prospective deal is the latest example of rising investment flows between the Gulf and China. The world’s second-biggest economy is the top buyer of Gulf oil and gas, while trade and capital flows between the two regions are expanding across sectors — from luxury real estate to technology and infrastructure.
The Middle East was the top recipient of investment from China’s Belt and Road Initiative last year, with Saudi Arabia attracting the most in the region. Gulf sovereign wealth funds have also stepped up investment in China and the majority plan to increase their allocations over the next five years, according to a recent Invesco study on global sovereign asset management.