(Yicai Global) June 28 -- Chinese insurance giant Ping An Insurance Group will invest up to CNY33 billion (USD5.1 billion) to acquire stakes in Singaporean property group CapitaLand’s six Raffles City developments in China. 

Ping An will buy equity in firms that control the commercial assets in Shanghai, Beijing, Ningbo, Chengdu, and Hangzhou through its life insurance unit to increase the value of its insurance funds, Ping An Life Insurance said to Yicai Global today. The transaction is expected to be completed in the third quarter.

CapitaLand expects to gain more than USD2 billion from the deal while the total valuation of the six properties is CNY46.7 billion, the Singapore-based target company said in a statement today. CapitaLand's shareholding will fall as low as 12.6 percent in some of the mall and office building assets.

Part of the unlocked capital will be used for investing in new economy assets, such as business parks, logistics, and data centers, amid its expanding exposure to the sector, said Puah Tze Shyang, chief investment officer at CapitaLand China.

CapitaLand manages more than CNY67 billion in assets in more than 200 cities in 30 countries, including nine Raffles City developments in China.

Ping An’s stock price [SHA:601318] fell 1.6 percent to CNY65.60 (USD10.20) this afternoon.

Editor: Dou Shicong, Emmi Laine, Xiao Yi