Increased state investment fund China bought 10 shopping centers in France and Belgium by around € 1.3 billion ($ 1,440,000,000), one of its biggest acquisitions in Europe. China Investment Corp., together with affiliates AEW Europe, bought the shopping center portfolio of CBRE Global Investors, according to company statements.
Chinese investors have been collecting international property in an attempt to diversify their holdings. In Europe, they bought $ 4,700,000,000 of property in the last 12 months, including this latest agreement CIC, according to Real Capital Analytics.
The level of investment is on par with the previous 12 months. But as Chinese investors become more familiar with the European market, considering increasingly active beyond the cornerstone cities like London and Paris.
The main Asian investors "are looking for a wider range of investments," said Sophie van Oosterom, chief investment officer at CBRE Global Investors, which manages over $ 87 billion of real estate assets. CIC latest agreement includes two prominent malls near Antwerp, Belgium. The other eight shopping centers were in France, including La Vache Noire in Paris.
Chinese conglomerate Fosun Group earlier this month promoted expansion plans in European ownership, forming a joint venture with Resolution Property Investment Management UK LLP. It Fosun based in Shanghai in April bought an office building in Milan for $ 372 million, according to Real Capital.
Chinese investors bought 50 billion rubles ($ 875 million) and 60 billion rubles worth of Russian national treasury bonds this year, Russian Finance Minister Anton Siluanov said Thursday.
Moscow has increasingly sought east for investors, even for internal debt, after the West imposed economic sanctions against Russia last year for his role in the crisis Ukraine.
"I think after purchasing volume and realize that this is a good investment, cost-effective, reliable, our Chinese partners the volume of investments in the Russian economy will grow," Siluanov said in an interview with television Russia-24 on the sidelines of the BRICS summit in the Russian city of Ufa.
President Vladimir Putin, whose country needs investment to exit a recession driven by sanctions and falling oil prices, has been changing its economic and political approach towards Asian markets and to China in particular.
Putin called for closer bilateral ties during talks Wednesday in Ufa with the president of China, Xi Jinping. The leaders of India, Brazil and South Africa are also attending the summit of BRICS.
The Russian Finance Ministry plans to borrow around 800 billion rubles in the domestic market in 2015. Bond purchases by China suggests high-performance Russian assets remain attractive to certain foreign investors, despite the sanctions and volatility in the Russian ruble, which are denominated called OFZ bonds.
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