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Reclusive Chinese billionaire strikes US$33m deal to take over Shanghai hotel

Online gaming billionaire Chen Tianqiao acquired the Mia Hotel at a discount, as investors bet on a recovery in China’s prime real estate market

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Tech billionaire Chen Tianqiao. Photo: Handout
Zhu Wenqianin Beijing

China’s first online gaming billionaire has acquired the Mia Hotel in downtown Shanghai in a deal worth about 220 million yuan (US$32.6 million), becoming one of the latest investors to bet on a turnaround in the country’s long-suffering property market.

Chen Tianqiao – a reclusive entrepreneur known for his global investment portfolio – bought the hotel from Singapore-headquartered investment firm GLP at a below-market price, with analysts describing the deal as a “sound investment”.

The 53-year-old, who has stayed out of the public eye in China for years, appears to be looking to take advantage of the long downturn in the Chinese property market, which has caused prices to plunge since 2020.

Shanda Group – the investment firm Chen initially founded as an online games company – obtained full ownership of the hotel on March 18, buying the stake owned by a subsidiary of GLP, according to Qichacha, a Chinese corporate database.

Property analysts said the deal for the hotel in Shanghai’s central Huangpu district had upside potential. Demand for prime real estate assets in China’s major cities has picked up in recent months, as investors hunt for bargains in anticipation of a market recovery.

“This can be viewed as a sound investment,” said Yan Yuejin, vice-president of Shanghai-based property consultancy E-house China Research and Development Institute.

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