The real estate division of Chinese insurance powerhouse Ping An announced that it is prepared to invest billions in the United States and is squarely targeting New York City as the recipient of numerous real estate investments.
In a report by The Real Deal, Ping An Real Estate US or PARE US, the properties group of the insurance company was made official towards the end of 2015. Former global real estate head of Salomon Brothers, Rick Singer, was announced as the chief executive.
Singer said this new group will be in-charge of operations for all real estate investments of Ping An in the U.S. He said, "The purpose is to consolidate the decision-making and process of deal flow to a local basis, so that Ping An can be much more active in investing in the US."
Singer also emphasized that PARE US aims to use local expertise in all its investments to differentiate them from other Chinese investors who entered the U.S. real estate market. He also explained that PARE US plans to diversify its investments and not focus solely on property development. The firm plans to take on structured debt offers, asset management and entity-level acquisitions. They are prepared to spend billions of dollars in the next two to four years. Singer pointed out, "To move the needle with Ping An, it takes that."
According to Consultancy UK, Ping An Insurance Group Company of China traces its roots in Shekou, Shenzhen when it started out in 1988. It was the first insurance firm in China to have a share-based structure and from there has become the second biggest insurance company in the country. It has several subsidiaries namely Ping An Life, Ping An Annuity, Ping An Bank, Ping An Securities, and Ping An Trust among many others. The company's total assets is estimated to be $720 billion.
