Ping An Ditches Sydney Skyscraper Stake Amid Market Reset

Ping An Insurance's real estate arm is finally close to selling its half-share in Sydney's Salesforce Tower, a deal worth around $900 million. The buyer is reportedly Investa, backed by the property arm of Canadian pension giant OMERS. This sale marks one of the longest-running episodes in Asia-Pacific insurers' retreat from concentrated trophy property.

The tower was completed in 2022 and initially valued at around $2 billion. However, due to rising rates and a global market reset, its value has fallen significantly, with Ping An's existing co-owners reportedly weighing their options after being given first right of refusal.

The deal highlights the tension between insurers' asset risk charge and the concentration of real estate exposure in their portfolios. The Australian general insurance industry holds around $34 billion in capital against a considerably smaller prescribed minimum, partly due to diversified investment income from property.