SHANGHAI--(BUSINESS WIRE)--China’s leading investment company Fosun Group (Fosun) and financial services leader Prudential Financial, Inc. (PFI) (NYSE: PRU), which does business as Pramerica in selected countries outside the U.S., announced today an expansion of their strategic relationship, building on their existing joint venture partnerships in life insurance and investment management, and focusing on key areas of growth in China.
The two companies, which began working together in 2011, intend to launch a real estate joint venture to invest in mixed use development projects in growing urban centers in China. PFI will also move its China headquarters into the Bund Financial Center, which is scheduled to open in 2015. In addition, both companies plan to work together to develop a retirement platform with products, services and educational resources that help Chinese individuals and families in retirement better cope with the challenges and those who are contemplating retirement prepare for it with security and peace of mind.
Fosun and PFI anticipate investing in and developing mixed use projects through a combination of proprietary and third-party capital. Both companies also expect to work together on real estate projects outside of China.
Fosun will also offer education and planning tools, as well as retirement benefits, to certain long-term employees of the company.
Guo Guangchang, Chairman of Fosun Group, said: “In a very short time, PFI has become an important strategic partner for Fosun, as we expand our global footprint. 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, drawing from our respective strengths in real estate, investment management and retirement. We also believe we have a responsibility to help our employees save for retirement, and that is why we are making a new benefit program available to them.”
Mark Grier, Vice Chairman of PFI, said: “We are delighted to expand our partnership with Fosun and strengthen our long-term commitment to China through these new strategic initiatives and the establishment of our China headquarters in the Bund Financial Center. We anticipate that Fosun’s investment ability and deep understanding of the market in China will continue to help us achieve PFI’s goal of developing a successful long-term presence in China, drawing from our shared investment philosophy and PFI’s expertise and track record of developing high value retirement products and services.”
Liang Xinjun, Vice Chairman and CEO of Fosun Group, said: “This strategic cooperation framework will encourage further utilization of both companies’ strengths, and China’s growth momentum will be combined with global resources in a profound way. Fosun Group has accumulated extensive industrial resources and channels, while PFI has versatile global resources. The in-depth cooperation between both companies will generate more business value for each other, and serve as a model for Chinese and American enterprises to share in the benefits of China’s economic development.”
In 2011, PFI and Fosun launched the $600 million Pramerica-Fosun China Opportunity Fund with a $500 million commitment from PFI, the single largest investment in a third-party management corporation in PFI’s 138-year history. Pramerica Fosun Life Insurance Company Ltd., the companies’ 50/50 life insurance joint venture, commenced operations in Shanghai in 2012. PFI also made a commitment, as a cornerstone limited partner, to Fosun’s second USD Fund in 2013.
Founded in Shanghai in 1992, Fosun Group is a leading non-state owned enterprise in China. Fosun International (00656.HK), the parent company of Fosun Group, has been listed on the Hong Kong Stock Exchange since 16 July 2007. Net assets of Fosun reached RMB35.7 billion at 30 June 2013, with RMB170 billion in total value of assets under management. Having a balanced industrial base, Fosun is now actively developing insurance, asset management and investments. It will pursue “Value Investing” principles combining “China’s Growth Momentum with Global Resources,” marking a major step forward towards becoming a premium investment group with a focus on China’s growth momentum. Fosun is ranked No.1019 in Forbes The World’s 2000 Largest Public Companies in 2013.
For more information concerning Fosun, visit www.fosun.com.
About Prudential Financial, Inc. (PFI)
PFI is a financial services leader with more than $1 trillion of assets under management as of September 30, 2013, and operations in the United States, Asia, Europe and Latin America. Leveraging its heritage of life insurance and asset management expertise, PFI is focused on helping individual and institutional customers grow and protect their wealth. In the U.S., the company’s Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. PFI's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, and investment management. PFI and its subsidiaries are not affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom.
Pramerica is a trade name used by PFI and its affiliates in selected countries outside the United States. For more information about PFI, please visit http://www.prudential.com.