Shanghai-based Chinese conglomerate Fosun Group says it plans to launch a real estate joint venture fund with U.S. financial firm Prudential Financial, Inc. to invest in property projects in China’s growing urban centers, according to a company release.
The parties did not say how much capital this fund has secured.
The joint fund will focus on investing in mixed use development projects through a combination of proprietary and third-party capital. Both companies also expect to work together on real estate projects outside of China.
The two parties also plan to work together to develop a retirement platform with products, services and educational resources to help Chinese individuals and families to manage their retirement.
"The growth of China’s urban centers and aging of our population present significant opportunities for our two companies to help address economic and development issues of critical importance to China," says Fosun’s chairman, Guo Guangchang.
The two companies began a strategic relationship in 2011, when they launched a US$600 million joint private equity fund, to which Prudential committed US$500 million.
That fund, named Pramerica-Fosun China Opportunity Fund, aims to invest in China-related companies both domestically or overseas.
The two companies also launched a 50/50 life insurance joint venture in Shanghai in 2012. In addition, Prudential is a cornerstone investor in Fosun’s second U.S. dollar fund in 2013.