Chinese firms buying luxury real estate properties in the US have been in the news recently, but one firm stands out in the industry when it comes to such move. Anbang Insurance Group, a company based in China, has been making bids on big hotel names in the US lately and is looking to acquire luxury properties such as Starwood Hotels and Resorts Worldwide Inc., Los Angeles Times reports. But what is Anbang Insurance Group exactly?
According to the aforementioned site, the company is "very wealthy." The company was reportedly established in 2004 in Beijing, China, and it steadily grew over the years to become "one of the largest insurance groups in China."
Interestingly, the company is said to have strong political ties, to which it owes its success. The site said that there were previous reports about the "power players" in the company; however, such reports have been taken down. The publication Southern Weekend though claims that the powerful people connected to the Chinese company include "Zhuo Ran, the granddaughter of China's former 'paramount leader' Deng Xiaoping; Zhu Yunlai, son of former premier Zhu Rongji; and Chen Xiaolu, son of Communist Party revolutionary military commander Chen Yi."
As previously mentioned, Anbang Insurance Group is among the Chinese companies that have shown interest in US real estate markets lately. Such firms are reportedly looking to expand outside their home market, specifically in the US, because of the deemed attractiveness of the US market and the stability of investments as well as US dollars, as compared with Chinese currency.
Just a few days ago, Business Standard reported that the Chinese firm is eyeing a Marriott-Starwood deal. The company has made an unsolicited bid to acquire the luxury real estate properties for $76 a share or a total of $12.8 billion. However, LA Times reports that Anbang has to fight for the deal as shareholders of Marriott and Starwood are set to vote on the fate of the luxury hotels in two weeks.
