[photopress:aetos.jpg,full,alignright]China Life Group, the biggest insurer in China, has agreed with New York-based Aetos Capital to hunt for deals in China’s property market.
Aetos has about $3 billion in property investments in Asia, mostly in Japan, but is a newcomer to China. China Life can supply the needed experience and Aetos intends to commit $1 billion to China over the next few years.
China Life is not putting any of its own money into the partnership as insurance companies are restricted in property, but has said it wants to allow insurers to invest in a broader array of asset. So, in preparation for the government easing of regulations, China Life will work with Aetos to identify real-estate deals and manage those assets.
Some clue as to how this all came about is supplied by the Aetos site which lists David Cheung as the Senior Fund Manager for Aetos Capital Management (Asia) although he has only recently joied the company. Prior to that he was an Investment Director at Prudential Asset Management where he led the Greater China equities investments.
If the government wants to cool down the real estate market allowing China Life to bung in $3 billion for an overseas investment company seems an unusual way of doing it.
Source: Wall Street Journal