Recently, the Beijing Municipal Administration for Market Regulation disclosed that Boyu Capital’s fifth USD fund plans to acquire a partial equity interest in Beijing Hualian (SKP) Department Store Co., Ltd. (hereinafter referred to as “Beijing SKP”) through its affiliated entities. Upon completion of the transaction, Boyu Capital’s affiliate will indirectly hold a 42%–45% stake in Beijing SKP as a financial investor.
Before the transaction, Radiance Investment Holdings Pte. Ltd. (hereinafter referred to as “Radiance”) held, both directly and indirectly, a 60% stake in Beijing SKP, while Beijing Hualian Group Investment Holding Co., Ltd. (hereinafter referred to as “Hualian Group”) held the remaining 40%. Beijing SKP was jointly controlled by Radiance and Hualian Group.
After the transaction, Radiance will continue to indirectly hold a 42%–45% stake in Beijing SKP and will retain control over the company. Beijing SKP will maintain its pre-transaction operational and management structure. Boyu Capital’s affiliate will indirectly hold a 42%–45% stake in Beijing SKP and will jointly control the company alongside Radiance.
According to the public filing, Boyu Capital’s fifth USD fund was established on March 30, 2021, in Singapore and focuses on private equity investment. The fund is ultimately controlled by Boyu Group, LLC (collectively referred to as “Boyu Capital” along with its controlled investment entities). Boyu Capital is an alternative asset management firm with an integrated synergy platform.
Radiance was established on September 14, 2011, in Singapore and is primarily engaged in investment holding. Its ultimate controller is an individual who is also engaged in investment holding.
Beijing SKP was founded on March 28, 2006, in Beijing and primarily engages in department store retail business within China. The company is ultimately controlled by an individual investor and the Hualian Group. The individual is involved in investment holding, while Hualian Group is mainly engaged in retail operations within the Chinese Mainland.
At the end of March this year, Bloomberg reported, citing sources familiar with the matter, that Boyu Capital was in advanced talks with Hualian Group to acquire the operating and development arm behind China’s luxury shopping mall SKP. The two parties were reportedly close to finalizing an agreement involving Beijing SKP. Discussions were also ongoing regarding a potential sale of physical shopping mall assets under the Beijing SKP investment portfolio.
Due to the confidential nature of the negotiations, Bloomberg’s sources requested anonymity and revealed that the overall business of Beijing SKP could be valued at between $4 billion and $5 billion.
Beijing SKP was formerly known as Shin Kong Place, which opened in Beijing in 2007. In March 2006, Taiwan’s Shin Kong Mitsukoshi and Hualian Group jointly established the Beijing Shin Kong Place project, each holding a 50% stake.
By 2011, annual sales at Beijing Shin Kong Place reached RMB 6.5 billion [approximately USD 900 million], making it the top single-store department store in the Chinese Mainland at the time, surpassing Hangzhou Tower, which had held the title for four consecutive years.
After Hualian Group took over independent operations of Beijing Shin Kong Place, it was officially renamed “Beijing SKP” in May 2015 (with the name already in use since 2014), with the abbreviation derived from Shin Kong Place.
Starting in 2018, Beijing SKP began expanding to other cities, launching in Xi’an in May of that year. At the end of 2022, SKP Chengdu began trial operations. SKP Wuhan is scheduled to open in July 2024, and another location is currently under construction in Hangzhou.
From 2011 to 2023, Beijing SKP (shopping center) held the title of the top-performing store in China, achieving RMB 26.5 billion [approximately USD 3.7 billion] in sales in 2023. However, in 2024, sales declined to RMB 22 billion [approximately USD 3.1 billion], and it was surpassed by Deji Plaza in Nanjing.
In the first quarter of 2025, Beijing SKP’s business performance rose 18% year-on-year, with sales on its anniversary celebration day increasing by 15% year-on-year. The number of outbound tax refund customers served in 2024 increased by 104% compared to the previous year. SKP Chengdu recorded a 182% year-on-year increase in tax refund transactions and a 224% surge in sales.
The filing also disclosed the market share of each SKP shopping center in its respective city: Beijing SKP holds 10%–15%; Xi’an SKP 15%–20%; Chengdu SKP 10%–15%; and Wuhan SKP 0%–5%.
｜Sources: Beijing Municipal Administration for Market Regulation, Bloomberg
｜Image Credit: Company website
｜Editor: LeZhi
