ZhongAn buys landmark offices in Shanghai

The insurer plans to build a FinTech cluster through the property purchase.

ZhongAn Online P&C Insurance announced its purchase of two office buildings in Bund, Shanghai worth around $200m (CNY1.44b) from the Rockefeller Group.

ZhongAn said in a bourse filing that the properties hold landmark status and scarcity. This aligns with Huangpu District's efforts to develop a FinTech ecosystem, enhancing the company's strategic collaboration with the government and reducing rental costs. 

Directors affirm the transaction's fairness, seeing it as beneficial to the Company and its shareholders.

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The insurer also indicated the funds for the purchase agreement will come from internal resources.

ZhonAn will provide payment for the first property before 15 May, worth $81.8m (CNY591m) or 100% of the building’s value. Further, payment for the second property will be made before 15 May of next year, which is worth $116.8m (CNY845m).

($1.00 = CNY7.23)