Limited upside after Blackstone’s offer
■ Blackstone’s voluntary cash offer of HK$5/share is subject to Chinese
regulator’s clearance. It is unclear how long clearance will take.
■ Given the low occupancy of SOHO’s IP portfolio, we believe there is much
room for Blackstone to optimise it.
■ The market has reacted positively to the deal, so we believe significant
upside is limited. We downgrade SOHO to Hold with a higher TP of HK$4.8.