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Fosun sells Sydney Tower as China cracks down on outbound deals
[SHANGHAI] Chinese conglomerate Fosun Group, the aggressive dealmaker facing government scrutiny over its overseas acquisitions, has sold out of its first Sydney property investment.
A Fosun Property partnership sold an office tower for A$150 million (US$115 million) to a joint venture involving Australia's Propertylink Group, according to a Propertylink statement Monday. The purchase price in 2015 was A$116.5 million. Fosun characterized the disposal as part of its normal buying and selling of properties.
The latest sale comes after a media report last month that Fosun is disposing of a London tower for 105 million pounds (US$140 million). China has tightened scrutiny of the outbound deals of Fosun, Anbang Insurance Group Co., Dalian Wanda Group Co. and HNA Group Co. A government campaign to stem capital outflows was codified in August with rules restricting companies from investing in property, hotel, entertainment and sports assets overseas.
In key real estate markets such as London and Tokyo, Fosun buys and sells based on commercial considerations, Fosun Property said in a statement.
"Fosun adheres to the principle of value investing, combining China's growth momentum with global resources," Fosun Property said. "Fosun will conduct outbound investments in a steady and compliant manner under the guidance of relevant government regulations." Last week, Chinese Ministry of Commerce spokesman Gao Feng said "irrational" outbound direct investment had been "effectively curbed." A 2015 statement on the acquisition of the building at 73 Miller Street described it as Fosun's first property investment in Sydney. Propertylink was Fosun's partner in the buy.