Europe’s Axa Real Estate Investment Managers has agreed to co-invest in residential projects in China with the country’s second largest insurance company.
In a statement today, the Paris-based firm, which is part of insurance giant Axa, said a memorandum of understanding had been signed with Ping An to develop mid- to high-end projects and that the move was a ‘first step’ in China. The second step is to launch a China property fund.
Pierre Vaquier, chief executive, said Axa’s strategy was to remain committed to the Asian continent. He added the firm was a “strong believer” in teaming up with a local expert to access markets.
Of Ping An, he said it had “in-depth knowledge” and shared the same risk management approach to investing and corporate governance as Axa.
Song Chengli, president of Ping An, said the co-operation with Axa further enhanced “cross border sharing of experience”. “Both parties shall endeavour to make use of this co-operation opportunity to cast a strong foundation for longer-term strategic co-operation,” he added.
Frank Khoo, who heads up the Asia platform for Axa, said there was still a “big urbanisation story” going on in China, helped by a young and growing population, rising incomes, and still-low mortgage penetration rates. He added: “Unlike investing in affordable housing, the middle class realm allows for innovative designs to be incorporated in developments. In terms of the lower end of the spectrum, I do not think we can add value here. It is all down to price and margins are too thin.”
If you do not receive this within five minutes, please try to sign in again. If the problem persists, please email: 
