China Investment Corporation to invest shopping malls in Europe

China Investment Corporation to invest shopping malls in EuropeJun. 25 – Recent years, China investment in Europe is growing bigger, the pattern is changing, more and more focus on deals high up value chain. Chinese companies are preparing for a wave of investments in Europe in engineering and technology as part of an effort to find new markets and gain greater control of global supply chains, according to bankers and industry experts.

As reported by Le Figaro, China Investment Corporation (CIC) plans to purchase a total of ten shopping malls located in France and Belgium from the US real estate firm CBRE Group for EUR 1.3bn. French-Dutch real estate group Unibail-Rodamco and Dutch Wereldhave also submitted a joint bid for the ten malls. However, their bid is lower than the offer from CIC. Eight of the malls are located in France and two are in Belgium.

Chinese government encourages Chinese companies to “go global” and setup their roots overseas rather than rely on exports. as for many Chinese companies view European deals as a “short cut to a customer base”, Europe as a better place to expand their business horizon around the world, because the favorable tax system, convince location and better investment surroundings. At the same time, internationally speaking, businesses around the world are more confident and at ease with buying high-tech equipment from a European supplier, whereas they would be less likely to do so if the supplier was Chinese and had a less established track record.

The Chinese investment groups are concentrating on to invest in businesses with expertise in machinery, materials and specialized components, fields where many European businesses occupy strong positions. Most of Chinese companies view purchasing these businesses is a worthy approach to complement their expertise in low-cost manufacturing with skills higher up the value chain. In 2014, there were 16 outbound commercial real estate acquisitions announced, representing nearly USD 9.4 billion aggregate value. While these all represent G8 countries, there is much more diversification than one year ago. In 2011, Chinese businesses invested $64.3bn in Europe in acquisitions, trade deals and loan agreements. This was more than double the comparable figure over the previous 11 quarters. Engineering and manufacturing have been a key focus.

Recent moves by Euro-Asia Group acquires subsidiaries of Simed. Euro-Asia (HK) Group announced recently its acquisition of America’s Simed Inc and Germany’s Simed GmbH, two subsidiaries of Simed Group. Simed specializes in designing, building, and equipping hospitals and other medical facilities. After the acquisition, Euro-Asia will acquire Simed’s sophisticated healthcare services and its maintenance solutions of medical facilities. Founded in 1997, Euro-Asia (HK) is a trade and commerce agency that has taken part in the establishment of more than 20 hospitals in China. Currently, it has over 50 active healthcare projects.

To further facilitate the trade between China and Europa, New cargo train service between China-Europe opens on June 13, 2015. This is the first freight train linking China’s Heilongjiang Province Harbin and Germany’s Hamburg. It runs a course of 9,820 kilometers and is expected to return to Harbin on July 11, 2015. The train opens a new trade route between China and Europe. It will pass Russia and Poland before reaching its destination of Hamburg, Germany, The train will transport goods between from China, Germany, Poland, as well other European countries such as France, Spain and Italy. For The List of Chinese Trade Associations Based in Europe (Networks Related To Trade & Investments) is available upon request, please contact with DCCC, or email to: info@dccchina.org

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