China Life Insurance Co has agreed to provide financing to recapitalize a net lease portfolio held by a fund managed by ElmTree Funds by forming a joint venture with the private equity group, according to an announcement this week by the US-based firm.
The deal would value the joint venture at $950 million, with China Life acquiring 95 percent and ElmTree retaining 5 percent of the entity, according to an account in The Wall Street Journal. Some 60 percent of the recapitalization is said to come in the form of new borrowing against the portfolio by the joint venture. That debt is being packaged into CMBS which are to be marketed by a syndicate led by JP Morgan Chase, according to the Journal story.
ElmTree Funds was assisted in the transaction by boutique real estate advisory firm Hodes Weill Securities, which acted as the exclusive financial advisor to the private equity firm.
The transaction marks the third time in the last two years that China Life, which dwarfs rival Anbang Insurance, has opted to invest in a fleet of no-name US properties, rather than pursuing a trophy deal.
By Courtesy of Mingtiandi