China's Wealth Fund Set To Invest €1bn in Paris

According to European media sources following a recent visit to Beijing by the French President, Chinese sovereign wealth fund China Investment Corporation is said to be ready to invest €1bn in property and infrastructure developments within the Grand Paris regional renewal project.

"CIC would be ready to commit €1bn to Grand Paris, particularly for property operations and infrastructure," the presidential office said during a recent visit to China by Hollande.

French state financing body CDC (Caisse des Dépôts et Consignations) would co-invest 20%-40% of the sum provided by CIC. Its investment would be made through the CDC International Capital unit, which specialises in direct investments in partnership with sovereign funds and international institutions.

CIC is a wholly state-owned company established in 2007 to diversify China’s foreign exchange holdings and seek maximum returns for its shareholder within certain risk limits.

The fund has some $575bn under management and has been eyeing investment in European infrastructure and real estate for more than two years. It recently acquired the €1.3bn Celsius Franco-Belgian retail portfolio in partnership with property investment manager AEW Europe. The deal was CIC's biggest property acquisition to date in mainland Europe.

 

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