Ping An Life intends to acquire 6 Raffles project equity of CapitaLand with no more than 33 billion
Today, Ping An Life issued an information disclosure announcement regarding large real estate investments. Ping An Life and CapitaLand Group signed a cooperation agreement to transfer part of the latter’s six Raffles City asset portfolios’ equity, involving Shanghai Raffles City, Beijing Raffles City, Ningbo Raffles City, Chengdu Raffles City, Changning Raffles City and Raffles City Hangzhou.
Ping An Life, as the main investment entity, invests in real estate by directly holding equity in each project company. The investment amount is expected to not exceed 33 billion yuan. Specifically, Ping An Life will hold 60% of Shanghai Raffles’ project company Shanghai Huaqing Real Estate Management Co., Ltd., 70% of Shanghai Changning Raffles’ project company Shanghai Orient Overseas Kaixuan Real Estate Co., Ltd., 70% of Hangzhou Raffles’ project company Raffles (Hangzhou) Real Estate Development Co., Ltd., 70% of Chengdu Raffles’ project company Chengdu Raffles Industrial Co., Ltd., and 70% of Ningbo Raffles’ project company Ningbo Xinyin Real Estate Development Co., Ltd.. These 6 project companies each hold 100% of the corresponding underlying assets and are mainly engaged in the development and operation of related properties.
Before the transaction, CapitaLand’s shareholding in each project is from 30.7% to 55% through private equity funds. After the transaction, its shareholding in each project will be 12.6% to 30%. It will continue to be responsible for project operations and asset management. The transaction is expected to be completed in the third quarter of 2021.
From the perspective of Ping An Life, as of March 31, 2021, Ping An Life’s consolidated total assets are 3509.444 billion yuan, and net assets are 280.7 billion yuan. After deducting the financial assets sold under repurchase agreements and investment-linked assets, its total assets are 3,297.232 billion yuan, and the net assets are 274.582 billion yuan.
After completion of the project investment, the balance of the target project investment accounted for approximately 1% of Ping An Life’s total assets at the end of the previous quarter. The book balance of Ping An Life’s investment in non-self-use real estate accounted for approximately 10.3% of its total assets at the end of the previous quarter.
Meanwhile, Ping An Life revealed in the announcement that it intends to provide shareholder loans totaling approximately RMB 4.1 billion to five of the project companies, constituting connected transactions.
Source: BlueWhale Insurance
translation: InsurView (originally Chinese news)