Blackstone to Invest in China Luxury Property Development

Blackstone Group (BX), a private equity firm, agreed to back a project to build luxury apartments in China.

Blackstone entered into the agreement with Hong Kong property developer Great Eagle, The Financial Times reported without naming its sources. Great Eagle will build over 1,000 new homes in Dalian in Liaoning, a coastal city in northern China. The project will also include over 400 hotel rooms.

China's property market is booming, leading some to worry about a property bubble. Authorities have moved to tighten lending standards as a precaution.

This would be Blackstone's first major investment in China's housing market. The company is focused on investments in developing countries such as India and China.