Fosun Group and Prudential Financial Plan Real Estate Joint Venture in China

Chinese investment firm Fosun Group and Prudential Financial, Inc. (PFI) from the US, today announced plans for a real estate joint venture to invest in mixed-use development projects in China, and in select overseas locations.

The two companies refrained from stating dollar amounts or location specifics for the projects, however, Fosun has recently focused within China on tourism developments such as its plans for a 7-star resort hotel in Shanghai. Overseas, the investment conglomerate purchased 1 Chase Manhattan Plaza from JP Morgan Chase for US$725 million last October.

In addition to the real estate investment, PFI announced that it will move its China headquarters into Shanghai’s Bund Financial Center, which is scheduled to open in 2015. In addition, both companies said they plan to work together to develop a retirement services platform for the Chinese market.

Fosun and PFI anticipate investing in and developing mixed use projects through a combination of proprietary and third-party capital. Both companies also expect to work together on real estate projects outside of China.

Mark Grier, Vice Chairman of PFI, said: “We anticipate that Fosun’s investment ability and deep understanding of the market in China will continue to help us achieve PFI’s goal of developing a successful long-term presence in China, drawing from our shared investment philosophy.”

In 2011, PFI and Fosun launched the $600 million Pramerica-Fosun China Opportunity Fund with a $500 million commitment from PFI, the single largest investment in a third-party management corporation in PFI’s 138-year history. Pramerica Fosun Life Insurance Company Ltd., the companies’ 50/50 life insurance joint venture, commenced operations in Shanghai in 2012. PFI also made a commitment, as a cornerstone limited partner, to Fosun’s second USD Fund in 2013.