Chinese Millions
Over the past four years, from September 2013 to October 2017, Chinese investors have invested $170 million in Russian real estate, according to a study by New Frontiers company Knight Frank. Thus, in terms of the total volume of Chinese investments in real estate, Russia ranked sixth among 69 countries participating in the Chinese program for the creation of the New Silk Road.
Alan Baloev, Director of the Department of Financial Markets and Investments Knight Frank, comments: "Due to the high capitalization rates, Chinese investors are really interested in Russian assets in the field of commercial real estate. I think that this year deals with the participation of the Chinese are possible.
Russia's high place in the rating was secured by the deal to purchase the business center "Voentorg" of the Chinese Fosun Group in 2017.
According to the study, most of China's investment funds were for the purchase and construction of real estate in Singapore ($3.87 billion), South Korea ($2.74 billion), Malaysia ($2.37 billion), New Zealand ($0.34 billion) and the Czech Republic ($0.31 billion). The main segments in which Chinese investors invested in the countries of the "New Silk Road" were construction ($5.22 billion), offices ($3.1 billion), retail real estate ($600 million), apartments ($520 million), warehouses ($410 million).) and hotels ($370 million). According to Knight Frank, a total of 57 commercial real estate transactions totaling $4.3 billion were concluded in Russia in 2017. More than 80% of these transactions were in Moscow and the Moscow region, and the most popular were the retail and office segments.
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