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China Life Takes 95% Stake in $950m US Real Estate Portfolio

November 16, 2016, China Life's New York representative office opened at Rockefeller Center in New York, China Life's President Minhui Liu gave a welcome speech at the ceremony. November 16, 2016, China Life's New York representative office opened at Rockefeller Center in New York, China Life's President Minhui Liu gave a welcome speech at the ceremony. Photo: Sina.com

Leading mainland insurer China Life is taking a 95 percent stake in a portfolio of US logistics and manufacturing centers, business parks and healthcare facilities valued at nearly $1 billion, as the Chinese giant continues to show a taste for platform deals.

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

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