Fosun Group and Prudential Financial, Inc. expand strategic partnership in
Announce intent to launch new real estate joint venture to invest in
developing urban centers in China
PFI to establish China headquarters in Bund Financial Center
Companies to launch retirement platform in China
SHANGHAI -- January 22, 2014
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
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
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Prudential Financial, Inc.
Chen Bo, + 86 21 23156758
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