China Investment Corporation (CIC) has reportedly trumped bids by European heavyweight investors to acquire the 10-asset Celsius shopping centre portfolio from CBRE Global Investors for €1.3 bn.

China Investment Corporation (CIC) has reportedly trumped bids by European heavyweight investors to acquire the 10-asset Celsius shopping centre portfolio from CBRE Global Investors for €1.3 bn.

French newspaper Le Figaro reported that CIC, the €500 bn Chinese sovereign wealth fund, submitted the highest bid for the portfolio of eight French and two Belgian shopping centres.

The newspaper said CIC was willing to 'break the piggy bank' and bid €100 mln over the top end of the initial indication price of €1 bn to €1.2 bn because shopping centres offer a 'safe return' of around 5%. Le Figaro did not cite sources in its story.

If confirmed, CIC's coup would represent its first big splash in the French real estate market.

Last week, PropertyEU reported that CIC was behind one of three binding offers submitted by the 5 June deadline, and CBRE Global Investors was poised to pick the preferred bidder. CIC submitted its bid in a joint venture with Paris-based AEW Europe, with Wereldhave and Unibail-Rodamco and a partnership of Belgium's AG, Altarea-Cogedim and insurer Predica also vying for the portfolio.

Fund wind-down
CBRE Global Investors hired Morgan Stanley earlier this year to sell the shopping centre portfolio owned by its Retail Property Fund France Belgium (RPFFB) as part of the fund’s termination programme.

The 10-property Celsius portfolio comprises eight malls in France which account for about half of the fund's value. They include La Vache Noire in Arcueil, Mayol in Toulon, Marques Avenue de Troyes as well as Bosquet in Pau, France.

In Belgium the fund owns a 50% interest in Wijnegem and 70% of Waasland near Antwerp, two of the country’s most successful shopping centres which are believed to be valued at a total of €600-700 mln.

AXA, which owns the other 50% of Wijnegen through a Belgian fund, is believed to be considering taking control of the remaining 50%.

Redevco owns approximately 30% of Waasland.

In total, the sale of the Belgian and French portfolio was expected to fetch some €1-1.2 bn, depending on the valuation of the French malls, which perform less well than the Belgian properties.