Anbang in talks to sell Japan real estate to Blackstone

Anbang in talks to sell Japan real estate to Blackstone
01/10/2018 , by , in INTERNATIONAL

Anbang Insurance Group Co Ltd aims to sell US$200 million worth of Japanese real estate to bidders including Blackstone Group LP, about two years after buying them from the U.S. investment firm, two people with knowledge of the matter said.

The debt-laden Chinese insurer, which was taken under the government control in February after spending more than US$30 billion on acquisitions in recent years, is selling a portion of its Japanese residential assets to shore up its balance sheet, the people said.

The assets on sale are part of the portfolio of apartment buildings Anbang bought from Blackstone for around US$2.3 billion, in its first foray into Japan’s real estate sector.

The divestment comes as Anbang, which also owns New York’s Waldorf Astoria hotel, is looking to offload US$10 billion worth of overseas properties as part of a government-led restructuring effort.

China’s government over the past year has sharpened its scrutiny of highly leveraged companies with overseas investments. Some conglomerates such as HNA Group Co Ltd and Dalian Wanda Group Co Ltd have recently sold foreign real estate to pay down debt.

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