SHARES of SOHO China tumbled 40 percent yesterday in their biggest daily drop since listing more than 14 years ago after Blackstone Group Inc. scrapped its HK$23.66 billion (US$3.04 billion) offer to buy the commercial real estate operator. The stock fell to as low as HK$2.10, the lowest since Nov. 3, 2020, in its worst day since listing in Oct. 2007. SOHO China said Blackstone, which had offered HK$5 per share in June to buy all shares in the company, had abandoned the deal Friday as pre-conditions were unable to be satisfied. The company had said in June the deal was subject to Chinese competition authorities granting clearance. SOHO has been seen as a takeover target since early 2020, as a lack of new assets in its pipeline and declining office rents in key Chinese cities put mounting pressure on its profits. China’s commercial property space is being pressured and developers are facing liquidity pinches amid a regulatory crackdown. SOHO China is 64 percent owned by the husband-and-wife founding team of chairman Pan Shiyi and chief executive Zhang Xin. The company’s key assets include its signature Bund SOHO in Shanghai and the landmark Wangjing SOHO in Beijing, designed by Zaha Hadid, the first woman to receive the prestigious Pritzker Architecture Prize. SOHO China said in March 2020 it was in talks on a potential deal with overseas financial investors that could lead to a bid for the company. In August that year it said all previous talks with potential investors had been terminated. Blackstone has been investing in office, retail and logistics assets in China since 2008 and owns approximately 6 million square meters of properties in the country. (SD-Agencies) | 