China’s Fosun ramps up property investment efforts in Europe
Mainland China’s largest privately owned investment conglomerate Fosun Group on Thursday announced the launch of a joint venture with London-based real estate investor Resolution Property to invest in 14 European countries, including the United Kingdom.
Fosun Property, as the group’s main property arm with 150 billion yuan of assets under management, will scout for opportunities across the world, including in tradeable securities linked with real estate businesses as well as private equity or venture capital firms with potential value to the Chinese market, the company said in a statement.
The joint venture, Resolution Property Investment Management (RPIM), will be majority owned by Fosun and is the group’s second asset management platform abroad after its acquisition of Japan’s IDERA Capital in May 2014.
“With Fosun’s backing, RPIM will be targeting investment in large assets and portfolios,” the statement said. “It will also be actively looking to export Resolution Property’s UK model of office development for the creative and digital sector to new European cities.”
In future, RPIM will be the exclusive platform for value-added investment in Europe for Fosun Property, utilising Fosun’s insurance capital and building up global investment capability
Fosun Group has been on a multibillion-dollar global shopping spree in recent years. The property arm made its European debut in October 2013 by acquiring London office tower Lloyds Chambers for £64.5 million. Last year it took over ¤700 million of real estate assets under management by Fidelidade when it bought Portugal’s largest insurer.
“In future, RPIM will be the exclusive platform for value-added investment in Europe for Fosun Property, utilising Fosun’s insurance capital and building up global investment capability,” said Xu Xiaoliang, Fosun Property’s president and vice-president of Fosun Group.
The joint venture will provide cornerstone funding for future funds to be launched by Resolution Property, including Resolution Real Estate Fund V later this year.
Fosun Property also directly owns properties in New York, London, Sydney, Lisbon and Tokyo. The company said in May it was planning to develop a luxury condominium project in Manhattan, its second real estate foray in New York.
In March, it bought an office building at 73 Miller Street in north Sydney for A$116.5 million along with fund manager Propertylink.
