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February 01, 2018 at 06:33 AM
Chinese real estate tycoon Cai Kui’s family office is in advanced talks to buy a U.S. hotel portfolio from Massachusetts Mutual Life Insurance Company for as much as $800 million, a person with knowledge of the matter said.
Hong Kong-based Junson Capital, which manages the wealth of the Longfor Properties Co. co-founder, plans to buy seven to eight hotels from MassMutual, according to the person. The assets are mostly boutique hotels, as well as a few resort properties, said the person, who asked not to be identified as the information is private.
MassMutual, which owns the properties through its asset-management arm Barings, is still negotiating final terms of a transaction with Junson, the person said. An agreement could be announced in the next few weeks, said the person.
(Related: MetLife Said to Join AXA, MassMutual in Pursuing Hong Kong Sale)
The deal shows how Chinese investors with offshore capital remain able to pursue real estate acquisitions around the world, even after the government placed new restrictions on buying trophy assets like overseas hotels, movie studios and sports teams. Any transaction would add to the $11.7 billion of announced hotel acquisitions by Asian companies over the past 12 months, data compiled by Bloomberg show.
Junson Capital didn’t immediately respond to an email seeking comment. Michael McNamara, a spokesman for MassMutual, said in an email that the company doesn’t comment on specific investments in its portfolio.
