Ping An's acquisition of the landmark City headquarters of insurer Lloyd's of London this week will pave the way for other Chinese insurers to enter the market, analysts say.
Ping An's acquisition of the landmark City headquarters of insurer Lloyd's of London this week will pave the way for other Chinese insurers to enter the market, analysts say.
China’s second biggest insurer Ping An acquired the iconic ‘inside-out’ building for £260 mln, reflecting an initial yield of 6%, marking the first real estate deal in the capital by a Chinese insurer.
Downtown Properties, the US arm of Chinese private equity group Gaw Capital Partners, advised Ping An on its acquisition of the futuristic office building that was designed by Richard Rogers. It was sold by German asset manger Commerz Real, which bought the trophy building for £231 mln in 2005. Lloyd’s lease on the site expires in 2031. Savills and CBRE advised the seller.
Other similar deals could now be on the cards, according Humbert Pang, managing partner and head of China at Gaw Capital Partners in Shanghai, and who advised Ping An. ‘Chinese insurance companies are very cash-rich but have largely focused on mainland China so far, although that is changing. We will see them investing more in stable international markets, such as London and New York. They have very deep pockets, so deals of up to £1 bn would be possible for them, without resorting to club deals,’ Pang said.
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