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Samsung China President Jang Won-ki (3rd from left) and Samsung Life Insurance President Kim Chang-soo (4th from left) join a groundbreaking ceremony for an office building in Beijing with Chinese contractors.
Samsung China President Jang Won-ki (3rd from left) and Samsung Life Insurance President Kim Chang-soo (4th from left) join a groundbreaking ceremony for an office building in Beijing with Chinese contractors.

 

Samsung Life Insurance is continuing real estate investment abroad in order to diversify its asset management portfolio amid the low interest rate trend as of late. 

The company announced on February 25 that it has started construction on a 63 story office building in Chaoyang, a key commercial district in Beijing. Samsung Life Insurance President Kim Chang-soo, personnel from the Beijing city government, and contractors participated in the groundbreaking ceremony. 

A total of 750 billion won (US$703.4 million) is being invested in the project, including 430 billion won spent on the land purchase. The construction is scheduled to be completed in late 2016. Samsung Life Insurance is expecting that it will be able to enjoy at least 5 percent of lease earnings a year. The percentage is about double the interest rate of a 10-year treasury bond.

Samsung Life Insurance and Samsung C&T own 90 percent and 10 percent shares in the building, respectively. The structure is 260m high and has 57 floors above ground and six under ground. The total floor area amounts to 167,500 m2

Earlier in July last year, the company had purchased the London 30 Gresham building in Britain for the purpose of portfolio expansion as well.

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