Insurer Ping An to acquire stakes in six Raffles City properties from Singapore’s CapitaLand in deal worth up to US$5.1 billion
- Ping An unit will acquire stakes in Raffles City Shanghai, Raffles City Beijing, Raffles City Ningbo, Raffles City Chengdu, Raffles City Changning (Shanghai) and Raffles City Hangzhou
- Acquisition will help in ‘appreciation of insurance funds’, Ping An says
“The six properties are the top-notch core assets of CapitaLand, with high-calibre tenants and stable rental income. The proposed investment will optimise the allocation of insurance funds and offer a stable and good return,” the Ping An unit said. “It will help in the appreciation of insurance funds.”
Ping An has over the years poured billions of yuan into real estate, through direct land purchases as well as through acquisitions of stakes in big and small property companies, including the Hebei-based China Fortune Land, which defaulted this year. For instance, the 110-storey Ping An International Finance Centre, Ping An’s flagship property in Shenzhen, which it built at a cost of US$1.5 billion. The property is the world’s fourth tallest tower.
Upon completion of the deal, CapitaLand will maintain stakes of between 12.6 per cent and 30 per cent in each development, according to the Singapore-based property giant’s announcement on Monday. It will also continue to provide asset management services to the six properties.
