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China Life Insurance Group has signed a recapitalization deal worth US$950 million with US-based private equity and real estate fund ElmTree Funds LLC.
In a statement issued earlier this week, Jim Koman, managing principal at ElmTree Funds said that the deal will give China Life immediate diversification and increased access to the US market, with both firms exploring opportunities for joint investments.
Initially, the joint venture’s portfolio will be composed of 48 single-tenant properties totalling around 511,000 square metres across 20 states. The agreement also includes the option to acquire two additional single-tenant net lease properties from ElmTree Net Lease Fund II, if certain conditions are met.
China Life Insurance is currently engaged in life insurance, property & casualty insurance, pension, asset management, and other financial services. As of end-2015, the group had consolidated total assets exceeding RMB3 trillion (US$438.8 billion), making it the largest insurer in terms of assets in the Chinese market.
Since it was founded in 2011, ElmTree Funds has acquired, developed , or financed over US$1.5 billion in properties for office, industrial, or healthcare use. Hodes Weill Securities, LLC acted as the exclusive financial advisor to ElmTree for this transaction.
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