Ping An Insurance Group forms $1.5b rental housing JV

The real estate unit of Ping An Insurance Group and Hong Kong–based developer Landsea Green Properties have announced plans for a $1.5 billion fund to support joint developments in major Chinese cities.

The venture plans to invest in long-term rental apartment projects in top-tier Chinese cities including Beijing, Shanghai, Guangzhou and Shenzhen, and key second-tier cities including Nanjing, Hangzhou and Wuhan in the coming three years.

Under the terms of the agreement, Landsea will be responsible for the design and operations management of the apartment projects.

The firms acquired a Shanghai project with plans to turn it into a high-end, long-term rental apartment complex.

The joint venture follows China’s recently launched pilot program to build rental housing projects in 13 major cities, including Beijing and Shanghai. The Chinese government is offering incentives to give tenants the same benefits as homeowners, such as granting them equal rights to a place in a public school for their children, according to South China Morning Post.

Mainland developers including China Vanke, Longfor Properties and China Merchants Shekou have joined the campaign to ease the country’s housing shortage and promote affordable shelter by setting up their own dedicated build-to-rent businesses, according to Mingtiandi.