Chinese launch bid for French Beaugrenelle mall - report

A Chinese sovereign wealth fund is reportedly one of the bidders for Gecina's Beaugrenelle shopping centre in the 15th district of Paris.

According to an article in Le Figaro newspaper, China's State Administration of Foreign Exchange (SAFE) has launched an offer for the mall, potentially paving the way for its first acquisition in Europe.

The mall, which is expected to fetch some €800 mln, is due to open at the end of October after a comprehensive redevelopment. It has reportedly received four other bids from German investor Union, retail specialists Altarea and Hammerson as well as Rockspring Investment Managers.

Landlord Gecina announced in July that it intended to sell the 45,000 m2 mall in the medium term. The French REIT, which owns a 75% interest in the mall, has hired banks Morgan Stanley, CACIB and HSBC to sell the scheme which had a development cost of some €450 mln.

A partnership of Foncière Euris, Apsys and Paris Orléans owns the remaining 25% of the scheme.