Chinese investment (ex Hong Kong) in Europe tripled last year as insurers, developers and private individuals joined the country’s sovereign wealth funds in seeking to diversify their assets outside Asia, analysis by research firm Real Capital Analytics (RCA) shows.

Chinese investment (ex Hong Kong) in Europe tripled last year as insurers, developers and private individuals joined the country’s sovereign wealth funds in seeking to diversify their assets outside Asia, analysis by research firm Real Capital Analytics (RCA) shows.

Chinese investors purchased €3.05 bn of commercial properties across Europe last year after they bought €978 mln of real estate in 2012, according to data compiled by RCA.

The number of buildings acquired, including those that formed part of portfolio transactions, rose to 43 in 2013 from 10 a year earlier.

Joseph Kelly, RCA’s Director of Market Analysis EMEA, said: 'After an initial wave of investment by sovereign wealth funds, that was focused on large trophy assets in London, wealthy individuals, developers and insurers have become increasingly active across a broader range of property types, lot sizes and European locations.'

In May 2013, China’s regulator relaxed rules restricting investment by insurance companies, to permit purchases of overseas real estate. A month later, Ping An Insurance made its first overseas property acquisition with the €304 mln purchase of the Lloyd’s Building in London.

The regulator has also doubled the proportion of capital that Chinese insurers are permitted to invest in infrastructure and real estate to 20% from 10% previously. In total Chinese insurers have RMB 7.4 trl (€900 bn) tied up in all investment asset classes.

Gingko Tree, an investment arm of the State Administration of Foreign Exchange, was China’s most active buyer in Europe’s real estate markets in 2013, acquiring 16 properties for €1.82 bn.

Private Chinese investors, such as Jianping Xu, were also active in European real estate in 2013, with Xu acquiring a development site in Germany, while the Kang family added two hotels in Ireland to their existing hospitality property holdings in China.

The wave of Chinese investment continues. Already in January we have seen what could potentially be the largest transaction in Europe for 2014 involving a Chinese buyer, with China Investment Corp.’s agreement to purchase the Chiswick Park business estate in west London from _x0002_Blackstone for around €917 mln.

Separately in another early January closing, Chinese state owned developer, Greenland Group has purchased The Ram Brewery mixed development site in South West London, highlighting the migration of capital outside of core central London.