A Chinese wealth fund acquired several European properties valued at $1.4B. The acquisition was part of a fund previously managed by CBRE Global Investors.
China Investment Corp. made one of the biggest acquisitions in Europe. Along with affiliates with AEW Europe, the Chinese wealth fund acquired the CBRE portfolio which includes two shopping centers in Waasland and Wijnegem located in Antwerp, Belgium. These properties comprised almost half of the fund's investment, reports IPE (Investments and Pensions Europe).
Aside from the Belgium shopping centers, the deal also included eight properties in France. One of which is the La Vache Noire located in the south of Paris and other high street retail assets. A separate statement from AEW Europe also states that the 221,000 square meters of CBRE's portfolio includes space rented to retailers such as H&M and Zara, reports Bloomberg.
In the past months, retail properties in Europe are being acquired by international investors who are taking advantage of Europe's "nascent" economic recovery. Nascent is a term that the New York Times used to describe Eurozone's recovery and its fledging or beginning display of future potential. According to BNP Paribas Real Estate, in the first quarter of the year, the sale of offices, logistic buildings and shops marked a 25 percent increase versus previous year. These properties were valued at €87.3 billion or $96.7 billion.
Meanwhile, Chinese investors have been snapping up international properties, states the Wall Street Journal (WSJ), to diversify their holdings. In the past 12 months, they have purchased $4.7 billion of real estate properties in Europe.
Sophie van Oosterom, Chief Investment Officer at CBRE Global Investors, said that major Asian investors are looking at a broader range of investments. Van Oosterom adds, "They are looking for sizable transactions, but they're not shying away from asset-management opportunities as well," reports WSJ.
China Investment Corp. is a Beijing based company and is one of China's largest investment funds.
