Milan sees positive surge of Chinese real estate investment
August 04, 2015 - Milano
Fosun, one of China's leading privately-owned groups, has purchased the former Milan headquarters of Italian bank UniCredit, another move that highlights an increasing interest of Chinese investors in real estate in Italy, and particularly in its business capital Milan.
"We are well aware of the historic importance of Broggi Palace to the city of Milan, and we are confident that we will maintain this historic building in excellent conditions," a spokesperson of Fosun Property told Xinhua on Friday, confirming the purchase.
Analysts said the move by Fosun, which has embarked on an expansion of overseas deals in recent times, came amid increased economic stability in Italy. In particular, the country's economic center Milan has seen a surge of deal requests.
"Structural reforms, particularly in terms of tax, competitive labor costs and changes to the banking system, as well as corporate stability that has helped the net wealth of households have strengthened the Italian market," Paolo Bellacosa, CBRE Managing Director of Capital Markets Italy, noted.
"I chose Italy as a launching pad because I love this country, its history, its culture and especially Milan, the capital of luxury and high-fashion," Zhu Xiaodong, Chairman and CEO of China Investment, an Italian-based company designed to channel Chinese capitals into projects in Italy, said in Milan days ago explaining why he invested 70 million euros in "Winter Gardens", a deluxe hospitality facility in the heart of Milan geared to Chinese businessmen and tourists.
"Chinese investors are strongly focusing on Milan," Aldo Cingolani, an architect and CEO of Bertone Design told Xinhua.
On Friday, Cingolani accompanied a delegation of Chinese investors to explore properties in Milan that Bertone Design will help to redevelop in 300-400 service apartments with a planned investment of 200-300 million euros.
"Also thanks to the ongoing world exposition in Milan, they have discovered a lively and international city which is also hosting a growing number of Chinese important companies with their management. They wish to start the project by the end of this year," Cingolani went on saying.
Andrea Faini, CEO of World Capital, a Milan-based company specialized in real estate consultancy and investment, and member of the council of the Italy-China Chamber of Commerce, confirmed to Xinhua increasing Chinese requests for real estate deals in Milan at around 30-40 million euros.
"Market is moving quickly, in particular as regards residences and the hotel sector," he said.
"Chinese investors see Milan as a capital of fashion, food, industry and business, but also a pleasant and comfortable city, easy to reach and with an international spirit," Faini highlighted.
Via Xinhua (official press agency of the People's Republic of China)
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