China Life Insurance Group, which is one of the largest insurance companies in China, buys 95% stake in 48 commercial property items in the territory of the United States, according to Dow Jones.
The total value of the real estate portfolio is estimated at $950 million. In particular, it includes industrial buildings that under a lease contract are exploited by Caterpillar and FedEx.
The deal highlights the growing interest of foreign investors to real estate markets that previously they almost completely ignored.
China Life purchases a majority package of the real estate portfolio with an area of 5.5 million square feet (511 square meter) from a private ElmTree Funds LLC. The remaining 5% stake will be still with ElmTree, which will continue to manage the assets.
