FINANCE

Insurers Back $2.4 Billion Deal for Ikea-Linked Malls in China

Published: Mar. 17, 2026 2:29 p.m. GMT+8

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A private equity fund backed largely by insurance capital is poised to acquire three Chinese shopping malls from Ikea parent Ingka Group for 17 billion yuan ($2.4 billion).

Insurance companies have emerged as some of the most active buyers of commercial property in China as foreign property owners scale back their exposure and low interest rates push insurers to seek stable income assets.

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A private equity fund, led by insurers and formed in February, is set to buy three IKEA-owned Livat malls in China for 17 billion yuan ($2.4 billion).
The deal is financed by a consortium of seven insurers providing about 6 billion yuan, with Ingka investing 2.5 billion yuan as a subordinated partner, and 8.5 billion yuan in loans.
The malls generated 13.7 billion yuan in 2024 sales with a 97% occupancy rate; senior institutional investors expect a 6.85% yield.

AI generated, for reference only

Who’s Who

Ikea: Ikea's parent company, Ingka Group, is selling three Chinese shopping malls to a private equity fund. This move is part of Ingka's strategy to adjust its operations in China, where Ikea retail sales saw a decline in fiscal 2024. Despite the sale, Ingka plans to remain involved by investing in the fund as a subordinated partner.

Ingka Group: Ingka Group, the parent company of Ikea, is selling three of its Livat-branded shopping malls in China for 17 billion yuan ($2.4 billion). This move is part of Ingka's strategy to adjust its operations in China, where Ikea retail sales have declined. Ingka plans to reinvest about 2.5 billion yuan into the fund as a subordinated partner, allowing them to maintain exposure to the assets while shifting to a lighter capital model.

Tianjin Lanqin Equity Investment Partnership: Tianjin Lanqin Equity Investment Partnership is a private equity fund established in February. It is the buyer of three Livat-branded shopping centers in Beijing, Wuxi, and Wuhan from Ingka Group for 17 billion yuan ($2.4 billion). The fund is largely backed by insurance capital, with a consortium of seven insurers led by Taikang contributing significantly.

Taikang: Taikang is a Chinese insurance company. It is leading a consortium of seven insurers that will contribute about 6 billion yuan as senior investors in an 8.6 billion yuan pre-REITs fund. This fund is set to acquire three Chinese shopping malls from Ikea's parent company, Ingka Group, for 17 billion yuan.

AIA Life Insurance Co. Ltd.: AIA Life Insurance Co. Ltd. is one of the participating insurers in a consortium led by Taikang. This consortium is expected to contribute approximately 6 billion yuan as senior investors in an 8.6 billion yuan pre-REITs fund. This fund aims to acquire three Chinese shopping malls from Ikea's parent company, Ingka Group, for 17 billion yuan.

Manulife-Sinochem Life Insurance Co. Ltd.: Manulife-Sinochem Life Insurance Co. Ltd. is one of the insurance companies participating in a consortium led by Taikang. This consortium is expected to contribute approximately 6 billion yuan as senior investors in an 8.6 billion yuan pre-REITs fund. This fund is acquiring three Chinese shopping malls from Ikea's parent company, Ingka Group, for 17 billion yuan.

Generali China Life Insurance Co. Ltd.: Generali China Life Insurance Co. Ltd. is participating in a consortium of seven insurers. This consortium will contribute about 6 billion yuan as senior investors in an 8.6 billion yuan pre-REITs fund. This fund is acquiring three Chinese shopping malls from Ingka Group (Ikea parent) for 17 billion yuan.

Sino-US United MetLife Insurance Co. Ltd.: Sino-US United MetLife Insurance Co. Ltd. is one of the seven insurers participating in a consortium led by Taikang. This consortium is funding the acquisition of three Chinese shopping malls from Ikea's parent company, Ingka Group, for 17 billion yuan. They are contributing approximately 6 billion yuan as senior investors in an 8.6 billion yuan pre-REITs fund.

GoHigh Capital: GoHigh Capital (高和资本) is a fund manager. They are involved in financing the acquisition of three Chinese shopping malls from Ikea's parent company, Ingka Group. GoHigh Capital is arranging approximately 8.5 billion yuan in acquisition loans, which constitutes about half of the 17 billion yuan purchase price.

Canada Pension Plan Investment Board: The Canada Pension Plan Investment Board (CPPIB) is one of the foreign investors mentioned in the article that has been selling off Chinese commercial property assets. This trend is driven by factors such as higher dollar financing costs and geopolitical tensions.

Abu Dhabi Investment Authority: The Abu Dhabi Investment Authority is mentioned as one of the foreign investors selling off commercial property assets in China to insurers. This trend is attributed to factors like higher dollar financing costs and geopolitical tensions.

AI generated, for reference only