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Fosun acquires stake in Paris Realty Fund

The property and investment management business of the Chinese conglomerate has acquired a 50.01% stake in the Paris-listed real estate investment firm.

Fosun Property Holdings, a subsidiary of Fosun International, has agreed to acquire 50.01 percent stake in Paris-headquartered real estate investment firm PAREF Group, also known as the Paris Realty Fund.

Fosun will acquire 604,473 shares of PAREF at a price of €75 per share, according to a company statement announcing the signing of an agreement between Fosun and four shareholders of PAREF. The €45.3 million deal is expected to be completed by the first half of the year.

PAREF Group invests in commercial office, industrial and residential properties mainly in Paris. As of end December last year, the group owned €167 million in property assets and managed assets worth €1328 million on behalf of third parties.

In February, PAREF announced that it had entered into exclusive negotiations with Fosun Property Holdings after it received a binding offer letter from the Chinese conglomerate in late January.

For Fosun International, the deal marks a continuation of its overseas push even amid top management changes. Last month, Liang Xinjun, the firm’s chief executive and co-founder reportedly stepped down citing health reasons, and was replaced by senior vice president Ding Guoqi.

Some of Fosun’s major international acquisitions include the purchase of a controlling share in Rio Bravo Investimentos, a Brazil-headquartered investment management firm; purchase of French leisure group Club Med; and the acquisition of a majority stake in European manager Resolution Property.