China Life Insurance Grabs 95% Interest In 48 U.S. Buildings

Offices, office market, office building

China Life Insurance Group, one of China's largest insurance companies, has acquired a 95% stake in a U.S. portfolio of 48 properties valued at $950M.

St. Louis-based private equity firm ElmTree Funds will keep the remaining 5% of its 5.5M SF portfolio. Properties include an industrial building leased by Catepillar Inc. in Seguin, Texas, and a FedEx distribution center in Staunton, Virginia.

The deal signals a shift in how foreign investors approach U.S. markets, as buyers start to target assets in secondary and tertiary markets over trophy assets in top markets like New York and San Francisco due to high prices, the Wall Street Journal reports.

ElmTree managing principal Jim Koman told the WSJ foreign capital is increasingly flowing into these secondary and tertiary markets, which can produce yields up to 3% higher than trophy assets.

ElmTree will continue to manage the properties.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Why Hines Is Restarting Its Development Engine

How Integrated Infrastructure Can Help AI Data Centers Deploy Faster, Build Smarter

Nvidia Buys Stake In Data Center Power Company

Invesco Cuts Fees, Adds Incentives To Quell Fund Redemption Requests

Investors Anchor Big Capital Into Marinas, Betting On Shallow Supply

Nike Closes 15 Stores Amid Tumultuous Year

Large Commercial Real Estate Sales Up 30% Despite Economic Headwinds

Evergrande Founder Sentenced To Life, 56 Others Sent To Prison In China

Loud And Clear: Why Aiphone Thinks Intercom Ownership Is Best For Multitenant Buildings

The Fast-Food Exec Taking Her Real Estate Talents To The Looksmaxxing Era

Republicans, Democrats Backing Away From Data Centers Amid Rising Backlash

TJ Maxx Parent Plans To Accelerate Store Openings In 2027