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Fosun disposes of Sydney tower as China tightens grip on outbound deals

Fosun Group has sold an office tower in Sydney for A$150 million amid China's heightened scrutiny of outbound deals, Bloomberg News reported.

A Fosun Property partnership sold the tower to a joint venture that involves Propertylink Group. The sale follows China's move to crack down on overseas investments by Fosun and other companies such as Anbang Insurance Group Co. Ltd., Dalian Wanda Group Co. and HNA Group Co. Ltd., and curb capital outflows, Bloomberg News said.

According to the report, Fosun Property described its disposal of the tower as par for the course in its property buying and selling. It also said it conducts property transactions in key markets like London and Tokyo with commercial considerations in mind.

"Fosun adheres to the principle of value investing, combining China's growth momentum with global resources," Fosun Property reportedly said. "Fosun will conduct outbound investments in a steady and compliant manner under the guidance of relevant government regulations."

The government issued new rules in August restricting deals in the property, hotel, film, entertainment and sports industries, while encouraging acquisitions in countries included in the Belt and Road initiative. With the clampdown on "speculative" foreign ventures in place, China's non-financial outbound investment fell 40.9% year over year in the first 10 months of 2017.

As of Dec. 15, US$1 was equivalent to A$1.31.