China's Anbang Insurance Group is currently engaged in talks to acquire a Japanese residential property worth up to $2.3 billion from American investment firm Blackstone, according to people familiar with the matter.

The agreement has already been touted as the biggest deal in Japan's real estate industry since the painful days of global financial crisis.

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Citing top sources, Reuters reported that Blackstone is looking to part away properties it had acquired from investors, including the one it had purchased in a deal with General Electric in 2014. The properties are mostly composed of residential buildings in Tokyo, Nagoya, and Osaka where most middle class people live.   

Sources further claimed that the discussion have reached to an advanced stage. However, no one from Blackstone or Anbang has so far issued any statement on the development.

It is still not clear how much return Blackstone would fetch from this deal. But if this pushes through, it would be the second acquisition agreeement Anbang and Blackstone made this year. The Chinese insurer acquired US luxury hotel collection Strategic Hotels & Resorts from Blackstone in March for $6.5 billion.

The deal would also mark Anbang's maiden entry in Japan's real estate industry.  

The Chinese insurance company has been in an overdrive to acquire international properties, mostly in the US. Apart from owning Strategic Hotels & Resorts, it also owns New York's famous Waldorf Astoria Hotel. It also aborted a $14 billion bid for Starwood Hotels & Resorts Worldwide Inc.

Analysts claim that Anbang's growing interest in the international real estate market is partly driven by the current slowdown of the Chinese economy.

TagsAnbang, Blackstone Group, Anbang and Blackstone, china