PICC looks for real estate investment in EU

People ride bicycles past a branch of PICC in Nanjing, Jiangsu province, June 14, 2014. [Photo/IC]

People's Insurance Company (Group) of China (PICC Group), one of the country's largest insurance groups, is actively seeking real estate investment opportunities in Europe, the company's top management said on Monday.

"We've been looking into real estate investment opportunities in London and other European countries," said Yang Jun, deputy general manager of financial assets management department of the group. "Compared with the assets in US, those in Europe are more attractive in terms of investment yield. However, the best investment timing could have been over now."

Chinese insurers have quickened their steps in snapping up overseas real estate in the past two years.

China Life Insurance Co, the country's largest insurer, together with Qatar Holding has bought 10 Upper Bank Street, a building in Canary Wharf, for 795 million pounds. The purchase was announced in June by Songbird Estates, the parent company of Canary Wharf Group. China Life has a 70 percent stake in the building.

Ping An Insurance (Group) Co of China bought the landmark Lloyds building for 261 million pounds last year.

"The trend will definitely continue, with more medium-sized insurers jumping on the bandwagon," said Henry Chin, head of research of CBRE, Asia Pacific.

"Considering the tax complexity in the US, the European cities, such as London, Paris and some German ones would be their primary target," said Chin.

The Hong Kong-based PICC Group's said its net profit attributable to equity holders for the six months ended 30 June 2014 dropped 12.3 percent year-on-year to 6,614 million yuan.

Half-year profit of insurer China Pacific jumps 25.3%	Insurance giant's net profit up 40%