Study On Pension Real Estate Investment Model Of Insurance Fund

The aging of the population is the most serious challenges for human society in the 21 st century. As the world’s most populous country, the rapid growth of the elderly people and the aging of the deepening of the performance are more obvious in our country. According to the sixth census in 2010, there is more than 178 million people over the age of 60 in the country, which is 13.26% of the total population. And the population aged over 65 is 119 million, 8.87% of the total population. The percentage rose by 2.93 and 1.91 points compared with the fifth national census. Clearly, China’s elderly population level is very high and accelerating growth. The trend of aging population brought about institutional change, which will trigger a series of social and economic change. However, it always means many challenges and opportunities for the development of the pension industry.Recently, according to a report named China Aging Industry Development Report(2014) from China Research Center on Aging released, China is the world’s largest real estate market, it will become the world’s largest pension real estate market. Under huge supply gap of government-led welfare pension institutions, Pension real estate is a good way to solve this problem. Faced with this sunrise industry, the investment and development subjects of pension estate are increasingly diverse. At the same time, China’s insurance industry has developed rapidly in recent years. The size of the insurance fund is very big. But the insurance company has also faced problems, such as narrow investment channels, low income, assets and asymmetric liabilities. With a range of central and local government support policies were introduced, the pension industry in China is widely optimistic. The investment enthusiasm of insurance funds is fully activated. After Insurance Regulatory Commission issued the Interim Measures for the insurance of real estate investment funds in September 2010, the real estate projects has become an important asset allocation channels for insurance company. And the pension real estate project as a main docking product for endowment insurance, is become the most important investment channels.“Pension + real estate” means a combination of intensive and theming real estate development model. Compared with traditional real estate projects, there are many different processes from pre-investment to develop aspects of the design, construction and operations management. The estate development value chain and service chain need to extend. The investment and development endowment force of pension real estate are large real estate developers, insurance companies, fund companies, state-owned enterprises and the industrial Group. And the real estate developers and insurance companies are the two most important investors. But they develop pension real estate in the traditional "all-around project development mode, which does not adapt to the pension estate project investment features, like long payback period, many subjects involved, professional. Therefore, it’s very necessary to build a investment mode by insurance company’s investment-led alliance system and cross-development system, a integration of social resources like real estate developers and insurance companies, medical institutions, professional operators. It can reduce management costs and operational risk, improve efficiency and achieve win-win situation for the parties involved.This paper aims to study the pension real estate investment model by insurance fund. It mainly focused on two core elements: First, a feasibility analysis of the insurance funds to invest in pension real estate on the basis of the status quo fit and theoretical studies. Second, the pension real estate investment model building, through investment subjectivity, alliance development operations, market maturity of more than three dimensions selected, we can build a “PE intervention + REITs exit” sustained investment pattern with “PE + REITs” investment system as the core and the whole process of the development of operating systems for league basis, in order to adapt the investment characteristics of insurance companies and pension real estate funding requirements in different stages of development.