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.”