BOSTON—China Life Insurance Group Co. and Ping An Insurance Co., along with New York's Tishman Speyer Properties, plan to buy a majority stake in $500 million Boston mixed-use project, according to the Wall Street Journal.
The Chinese firm's, two of the country's largest insurance companies, are making their first investment in U.S. commercial real estate, according to a source cited by the Journal.
The plans call for a 13-story office tower and a nine-story condominium building that will include 100 units. The project in the city's popular Seaport District will take up most of Pier 4, which was known for Anthony's Pier 4, a restaurant that closed two years ago to make way for redeveloping the site.
The investment is another indicator that Chinese insurance companies are becoming a force in global real-estate investment.
Rob Speyer, co-chief executive of Tishman Speyer, confirmed for the Journal that China Life and Ping An's participation in the deal, but did not discuss the sizer or portion of their stakes. Until just three years ago, the Chinese government prohibited China's insurance companies from buying foreign property, but they are now joining other Chinese investors in becoming increasingly active in Western markets.
Since the beginning of the year, Chinese insurance companies have purchased $2.5 billion in foreign property, more than they acquired in all previous years combined, according to the Journal. Chinese investors in 2014 bought $13.6 billion in foreign real estate, down slightly from $15.3 billion in 2013.
China Life Insurance Co. is the country's largest insurer by premiums, and Ping An ranks second. All told, the assets of Chinese insurers have reached $1.7 trillion (10.55 trillion yuan) as of the end of February.
Tishman Speyer entered the China market as a developer, but lately it is also using the contacts it has made to partner with Chinese investors in US deals, Speyer told the Journal.
Click Wall Street Journal to read the full story.
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