Anbang gets $9.7B bailout

Beijing took control of troubled insurer in February

New York /
Apr.April 04, 2018 10:30 AM

Xi Jinping and the Waldorf Astoria

Anbang Insurance Group is getting a $9.7 billion government bailout to prevent it from collapsing.

The China Insurance Regulatory Commission said Wednesday that the move is meant to protect policyholders. The money comes from the China Insurance Industry Fund, a bailout fund backed by the industry, Bloomberg reported.

In February, Beijing took control of the struggling insurer, which owns the Waldorf Astoria hotel, for at least a year. The company funded long-term investments, for example in real estate, by selling short-term, high-yield investment products, leading to fears over its stability. Founder Wu Xiaohui is currently on trial for fraud.

Meanwhile, the Waldorf Astoria’s condo conversion appears to continue. Anbang filed an offering plan for 352 units in March. The Waldorf will hold 350 hotel rooms and suites on the lower floors, according to plans filed with the city’s Department of Buildings. Those plans show condos will be located on floors 14 through 43. Floors 14 and 15 will have 28 units each. Higher floors will have fewer units: floors 40, 41 and 42 will have two units a piece.

Prosecutors in China last week said that Anbang’s former chairman Wu Xiaohui carried out a $10 billion fraud that threatened national security. Wu is expected to be found guilty and could spend the rest of his life in prison. [Bloomberg]Konrad Putzier


Related Articles

arrow_forward_ios
Commercial property sales outpace pre-pandemic figures in Q2
Commercial property sales outpace pre-pandemic figures in Q2
Commercial property sales outpace pre-pandemic figures in Q2
David Grutman and Pharrell’s Goodtime Hotel had received nearly 30 noise violations (Carma Connected, Getty)
Party over? Pharrell’s Goodtime Hotel in Miami Beach could lose entertainment permit
Party over? Pharrell’s Goodtime Hotel in Miami Beach could lose entertainment permit
The Delta variant and the CDC’s recent mask reversal is adding a new element of intrigue to return-to-work policies. (iStock)
Covid surge, CDC reversal upends back-to-office plans
Covid surge, CDC reversal upends back-to-office plans
Loan surge at NYCB points to recovery of multifamily market
Loan surge at NYCB points to recovery of multifamily market
Loan surge at NYCB points to recovery of multifamily market
Boston Properties CEO Owen Thomas (Thomas by Axel Dupeux, iStock)
Work-from-home threat “overstated,” Boston Properties CEO says
Work-from-home threat “overstated,” Boston Properties CEO says
Turner & Townsend CEO Vincent Clancy and CBRE CEO Bob Sulentic (Turner & Townsend, CBRE)
CBRE pays $1.3B for 60% stake in London-based project manager
CBRE pays $1.3B for 60% stake in London-based project manager
Proptech revolution grows as landlords turn to big data to manage properties
Proptech revolution grows as landlords turn to big data to manage properties
Proptech revolution grows as landlords turn to big data to manage properties
Douglas Elliman CEO Dottie Herman on FOX
Elliman CEO: ‘People are afraid to walk in NYC’
Elliman CEO: ‘People are afraid to walk in NYC’
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...