Anbang's pivot to Asia makes sense now

London

CALL it the North Asia bet. Anbang Insurance Group Co - which made headlines earlier this year when it aborted the US$14 billion pursuit of Starwood Hotels & Resorts Worldwide Inc - is sharpening its focus on Japan. With some recent acquisitions facing regulatory pushback in the US, the Chinese firm's pivot closer to home makes a lot of sense now.

Beijing-based Anbang is in talks to buy as much as US$2.3 billion in Japanese residential property assets from Blackstone Group LP, in what would be the biggest investment in the country's real estate market since the global financial crisis. The purchase includes properties in large cities such as Tokyo, Osaka and Nagoya, and would be Anbang's first foray into Asia's second-largest economy since a failed bid for an asset manager last year. It would also be Anbang's second North Asia transaction in a matter of weeks. Tongyang Life Insurance Co, owned by Anbang, was part of a consortium that bought a U…