CIS increases London property holding
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E-mail China Daily, October 26, 2012
CIC made its first investment in the UK's property market in 2009, when it became a shareholder in Songbird Estates, which owns Canary Wharf, in the wake of the financial crisis. The district is the home to the global headquarters of banks such as HSBC and Credit Suisse, and 90,000 people work there.
The sovereign wealth fund is also involved in infrastructure projects in the UK. In January, it acquired an 8.86 percent stake in Thames Water, the UK's largest water and sewage company.
The UK is more open to Chinese investment than other developed economies such as the United States, said Williams. The British government has maintained a position that China can be helpful when the economy in the UK is not doing well.
"I expect a wave of Chinese investment in the UK in the coming years in sectors like real estate," he said.
London's property market has been attractive to global investors due to its position as one of the world's main financial centers, and the fact that most global financial companies have a presence there. Many European banks' head offices are located in London.
A report by property company Jones Lang LaSalle said investment in central London reached $11.76 billion at the end of the first half of this year, up 24 percent year-on-year. This was mainly driven by overseas investment, which amounted to $8.2 billion.
"Despite continued economic uncertainty in the eurozone, we will continue to see investor demand driven by overseas capital, notably private Asian and sovereign wealth funds," the company said.
In the first half of 2012, Asian investors accounted for 16 percent of transactions, according to the report.
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