Standard Chartered close to selling real estate principal finance unit to Actis: report

StanChart is also in discussions to sell its private equity unit, which is the other part of the principal finance business

Aditi Shah, Sumeet Chatterjee
Updated23 Nov 2017
Standard Chartered’s private equity unit has investments worth about $3.5 billion, of which $1.2 billion is from the bank’s own book. Photo: Reuters
Standard Chartered’s private equity unit has investments worth about $3.5 billion, of which $1.2 billion is from the bank’s own book. Photo: Reuters

New Delhi/Hong Kong: Standard Chartered is close to selling its real estate principal finance unit to private equity firm Actis, people with knowledge of the matter said, following the bank’s decision last year to exit the loss-making business.

StanChart is also in discussions to sell its private equity unit, which is the other part of the principal finance business, one of the people in the know said.

The real estate principal finance unit has around $700 million in investments, mainly across India, China, South Korea and Southeast Asia, and will be spun off to Actis, including the people managing the investments, two people in the know told Reuters.

The people declined to be named as they are not authorised to speak to the media.

A spokeswoman for Standard Chartered and a spokesman for Actis declined to comment.

Divestment of the principal finance business comes as emerging markets-focused StanChart looks to boost its income after two years of restructuring under chief executive and former JPMorgan banker Bill Winters. It has cut more than 15,000 jobs and axed business lines such as Asian equities.

The principal finance business has been a drag on the bank’s balance sheet, reporting an operating loss of $217 million in 2016. From 2017, the gains and losses from this business were excluded from the bank’s financial performance, after it announced it was quitting the business last year.

It has still been making selective investments this year, however. In March it acquired a site in Insadong, Seoul, in a joint purchase with GS Retail, one of South Korea’s largest retailers.

Actis is a UK-based private equity firm that has invested in sectors including consumer, energy, financial services and real estate sectors across Africa, Asia and Latin America.

Standard Chartered’s private equity unit has investments worth about $3.5 billion, of which $1.2 billion is from the bank’s own book, the person said, adding that Credit Suisse is advising Standard Chartered on selling the unit. Reuters

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
HomeindustrybankingStandard Chartered close to selling real estate principal finance unit to Actis: report

Most Active Stocks

Ashok Leyland

226.75
10:28 AM | 27 MAY 2024
16.2 (7.69%)

Bharat Electronics

294.35
10:20 AM | 27 MAY 2024
-2.75 (-0.93%)

Zee Entertainment Enterprises

148.95
10:27 AM | 27 MAY 2024
-2.7 (-1.78%)

Tata Steel

175.50
10:29 AM | 27 MAY 2024
0.7 (0.4%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Vishnu Prakash R Punglia

174.50
10:14 AM | 27 MAY 2024
14.1 (8.79%)

Clara Industries

240.00
09:59 AM | 27 MAY 2024
19.35 (8.77%)

Glenmark Pharmaceuticals

1,120.30
10:18 AM | 27 MAY 2024
84.9 (8.2%)

JBM Auto

2,124.30
10:29 AM | 27 MAY 2024
158.9 (8.08%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,045.00216.00
    Chennai
    73,613.00288.00
    Delhi
    73,180.00-72.00
    Kolkata
    73,325.00-144.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    99.84/L0.00
    Chennai
    100.85/L-0.03
    Kolkata
    103.94/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumFor youGet App