What capital controls? This Chinese company is still buying real estate overseas
UK affiliate of Fosun has acquired London’s Royal Exchange for $58M
The overseas buying spree for Chinese companies hasn’t come to a complete halt – at least not for everyone.
The United Kingdom affiliate of Fosun International, a Chinese conglomerate, has purchased London’s historic Royal Exchange building for $58.4 million, according to the South China Morning Post. The affiliate, Resolution Property, purchased four floors in the property spanning 68,000 square feet from the European investment firm MARCOL.
Fosun bought 60 percent of Resolution Property in 2015 for $17.9 million and uses it to buy properties in Europe. Fosun’s co-founder Guo Guangchang said in August that the company would keep trying to expand its footprint through international deals, although it has lessened its overseas investments since the Chinese government tightened rules on moving capital out of the country.
However, Paul Hastings partner Paul Guan told the Morning Post that this did not ban companies from investing overseas entirely.
“A lot of companies have been doing outbound investment for a long time,” he said. “They have reputable local partners, do not overbid and have proved that their overseas investments are for the purpose of diversifying their portfolios for better returns. The door on overseas investments in real estate has not shut down.” [South China Morning Post] –Eddie Small