Chinese group Anbang paying $6.5m for ‘Strategic Hotels’ portfolio

Blackstone Group has reportedly agreed to sell Strategic Hotels & Resorts to China's Anbang Insurance Group for $6.5 billion.

Blackstone Group has reportedly agreed to sell Strategic Hotels & Resorts to China’s Anbang Insurance Group for $6.5 billion.

Blackstone completed its acquisition of Strategic Hotels just a few months ago in December for $6 billion, including debt.

The two parties did not immediately respond to requests for comment regarding the debt component of the sale, nor had the firms released any statements by press time.

Blackstone was reportedly intent on selling the properties individually properties before Anbang stepped in with its offer. The Beijing-based firm previously grabbed headlines for its acquisition of the Waldorf Astoria in New York last year for nearly $2 billion.

The Strategic Hotels portfolio is comprised of 16 properties with more than 7,500 rooms in addition to meeting and banquet space, including Ritz-Carlton locations in California and the Four Seasons Resort in Jackson Hole, Wyoming.

The deals show that some Asian investors have become comfortable doing business in US real estate markets on their own as opposed to forming joint ventures, as they take advantage of new rules allowing them to invest up to $1 billion without government approval — up from just $100 million.

Among other examples, Shanghai-based Fosun International acquired One Chase Manhattan Plaza in New York from JPMorgan Chase for $725m in late 2013.

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