Ping An Insurance 'in talks' to buy Frankfurt building that could fetch US$1 billion

Ping An Insurance (Group), China's second-largest insurer, has submitted a bid for a landmark building in Frankfurt, sources with knowledge of the matter said.

The Squaire, a ship-like office and hotel complex perched atop the train station at Frankfurt airport, could fetch as much as US$1 billion, said one of the sources.

IVG Immobilien, which built the property in 2011 for more than €1 billion (HK$9.56 billion), had hired CBRE Group to manage the sale, the sources said.

Chinese companies might spend as much as US$15 billion on overseas property purchases this year, encouraged by a depressed residential housing market in the country, Knight Frank wrote in a report this month.

Ping An made its first real estate acquisition outside China last year when it bought the Lloyd's of London tower for £260 million (HK$3.2 billion), sources with knowledge of the matter said at the time.

The Chinese insurance company sent a team to Frankfurt last month to inspect The Squaire, according to one of the sources. It had been in touch with Deutsche Bank about financing the potential purchase, the source said.