Chinese real estate investment in France up 160% year on year
The amount of Chinese investment in French real estate totaled 3 billion dollars in 2015, a 160% increase on 2014, according to a new study assessing Chinese investment into Europe and North America.
According to a recent report by legal firm Baker & McKenzie, Chinese investment into France totaled 3.6 billion dollars in 2015 against just 1.3 billion dollars in 2014, thus jumping by 160% in one year. The most coveted sectors for Chinese investors are French real estate and hotels. These areas concentrate over 84% of Chinese investment in France.
The study, entitled “Bird’s Eye View: Comparing Chinese investment into North America and Europe,” reports that France is the second country in Europe to have received the most Chinese investment last year, behind Italy. Conversely, investment into the UK declined by 35%.
The growth in Chinese amounts invested into France is mainly due to “megadeals,” the largest of which are the takeover of the Club Med by the Fosun conglomerate — for 939 million euros — and the purchase of the Louvre Hotels by the Jin Jiang Group — for 1.3 billion euros.
Chinese groups reportedly employ 20,000 employers in France, a number which has doubled in five years, according to France TV Info.
Recent years have seen a number of large-scale Chinese investments into French real estate. In 2013, a Chinese group operating through its Hong Kong holding company bought the prestigious Marriott Hotel on the Champs-Elysées for almost 350 million euros. More recently, Chinese sovereign wealth fund China Investment Corporation disclosed plans to invest up to a billion euros in property and infrastructure developments for Grand Paris or Greater Paris.
Another large French real estate project is in the works for 2024. Giant leisure park EuropaCity, which will be located in the north of Paris, is being partly funded by Chinese commercial real estate group Dalian Wanda.
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