The Real Deal New York

Here’s how much China’s spent on its European RE portfolio over the past 10 years

Entities with links to the state have bought almost $24 billion worth of property in the European Union over the past decade.
April 28, 2018 02:50PM

(Credit from left: The Kremlin, TASS)

Over the past decade, China’s racked up about $318 billion worth of investments in European assets, and it’s starting to make the European Union wary.

In terms of its real estate holdings, Chinese entities have invested $23.9 billion in property across the EU since 2008, according to a new audit conducted by Bloomberg of China’s investments in Europe. Of the decade-long total of $318 billion, about 63 percent of the investors behind the deals were either backed by the Chinese government or state investment funds.

French president Emmanuel Macron and German Chancellor Angela Merkel advocate investment screening in the face of the deluge of deals by upward of 670 companies either owned directly or linked to the Chinese government, according to Bloomberg, but some countries are opposed claiming such measures will deter other investors.

Bloomberg singled out London as the property market where Chinese real estate moves is most readily apparent, particularly in the office market. The audit found that there has been 45 percent more investment activity by Chinese companies across all sectors in Europe than in the U.S.

The review of Chinese companies and state holdings in Europe comes as authorities in China are cracking down on real estate investments outside the country with companies starting offshore investment funds or selling off their portfolios to avoid getting caught in the cross hairs. [Bloomberg]Erin Hudson