Ocean Group and China Life Insurance established a joint venture: Focus on commercial real estate operations
Recently, Oceanwide Group and China Life Insurance announced the establishment of a joint venture, focusing on commercial real estate operations. This cooperation marks the in-depth layout of the two giants in the commercial real estate field and has attracted widespread attention from the industry. The following is a review of popular topics across the Internet in the past 10 days, as well as the core data analysis of this cooperation.
1. Cooperation background and core content
The joint venture between Oceanwide Group and China Life Insurance will focus on the operation and management of commercial real estate, including office buildings, shopping centers, long-term rental apartments and other formats. Both parties will integrate resources, give full play to their respective advantages in capital, operations and brand, and create more competitive commercial real estate projects.
| Partners | Shareholding ratio | Main business |
|---|---|---|
| Oceanwide Group | 50% | Real estate development and operation |
| China Life Insurance | 50% | Insurance funds and asset management |
2. Current status of the commercial real estate market
In recent years, the commercial real estate market has shown the following trends: strong demand in the core areas of first- and second-tier cities, but fierce competition; third- and fourth-tier cities are facing pressure to destock. The joint venture between Oceanwide and China Life is expected to seize high-quality resources through capital advantages.
| City Level | Vacancy rate | Rent level (yuan/㎡/month) |
|---|---|---|
| First-tier cities | 12.5% | 350-500 |
| Second-tier cities | 18.3% | 200-350 |
| Third- and fourth-tier cities | 25.7% | 100-200 |
3. Highlights of cooperation and industry impact
1.Capital Advantage: As an insurance giant, China Life Insurance will provide long-term and stable financial support to the joint venture.
2.Operational experience: Ocean Group has accumulated rich accumulation in the commercial real estate field and has operated well for many of its projects.
3.Industry impact: This cooperation may promote further integration in the commercial real estate field, and small and medium-sized developers may face greater competitive pressure.
4. Future prospects
The joint venture plans to invest more than 10 billion yuan in the next three years, focusing on the core business districts of first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen. At the same time, both parties will explore innovative financial tools such as REITs to provide new paths for the sustainable development of commercial real estate.
| Time node | Target |
|---|---|
| 2023 | Completed the first project acquisition |
| 2024 | Operating area exceeds 500,000 square meters |
| 2025 | Realize asset securitization |
5. Summary
The joint venture between Oceanwide Group and China Life Insurance is an important attempt in the field of commercial real estate. The two parties have complementary advantages and are expected to stand out in the fierce market competition. In the future, with the deep integration of capital and operations, the commercial real estate industry may usher in a new round of reshuffle.
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