Beijing Hualian Group Investment Holding Co. is reportedly in advanced talks to sell the operations and development arm behind its luxury malls in China to private equity firm Boyu Capital, according to sources close to the matter.
The illuminated “Tower of Vitality” water column at the Chengdu SKP in Sichuan Province. – Photographer: Yang Haiyong/VCG/Getty Images
The parties are said to be close to finalizing an agreement involving the side of Beijing Hualian SKP Department Store Co., which manages and operates its high-end retail properties. Discussions are also reportedly underway concerning the potential sale of the physical mall assets under the Hualian SKP portfolio.
SKP operates luxury malls in Beijing, Xi’an, Chengdu, and Wuhan, with another site currently under construction in Hangzhou. The sources, speaking on condition of anonymity due to the private nature of the negotiations, said the overall SKP business could be valued between $4 billion and $5 billion.
The sources noted that deliberations remain ongoing and may not lead to a transaction. Additional bidders could still emerge.
Representatives for Beijing Hualian Group and Boyu Capital declined to comment.
The Beijing SKP property is considered one of China’s most successful luxury shopping destinations, generating 26.5 billion yuan ($3.6 billion) in revenue in 2023.
According to Chinese state media, SKP Xi’an and SKP Chengdu recorded 8 billion yuan in sales and 5.5 billion yuan, respectively. The Wuhan mall opened in July 2024.
