BREC Talks to H.E. Basil Constantinescu
Romanian Ambassador to the People`s Republic of China
“Chinese companies will become more and more interested in the investment opportunities in Romania, in the context of dynamic promotion of the New Silk Road Initiative”
One of the proposed routes in the initiative is China – Port Batumi-Port Constanta. If the railway road will include Romania, the new created infrastructure will have a massive impact on the local logistics sector, with the potential of attracting new, important players on the market.
Private Real Estate in ECE region targeted by China`s New Silk Road Initiative
On the occasion of the 16+1 Summit (China-Central and Estearn European Countries) in Riga, November 2016, the China – Central and Eastearn European investment Fund was launched – a private equity fund meant to support investment projects implemented through the 16+1 Cooperation Format.
Industrial and Commercial Bank of China (ICBC) Financial Group was designated by the Chinese Government to launch consultations with potential partners, for the establishment and operationalisation of the fund. Thus, under the coordination of Sino-Central Eastern Europe Financial Holding Corporation (CEEFC), member of ICBC, consultations, strategic lines and ways of operation of the Fund have been established. CEFC, together wth ECE partners and other Anchor Investors will contribute to the initial capital with EUR 1 bln., as Limited Partners. Other premium institutional investors are expected to contribute with EUR 9 bln., following a fund raising campaign.
Chinese funds of EUR 10 Bln. for projects in Central & East Europe, through the Initiative
The Fund will mainly finance projects in the ECE region, as well as projects developed under the new Silk Roads Initiative in other regions. Under market conditions, without irredeemable component, public projects will be financed (such as transportation infrastructure, energy, utilities and other public projects). A special attention will be provided to private sector projects able to generate important growth in the following period – companies activating in healthcare sector, agriculture, IT&C, High-Tech, Real Estate, states the Romanian Ambassador to the People`s Republic of China.
The Initiative is considered the biggest foreign spending program by any one country since the U.S.’ Marshall Plan to rebuild post-World War II Europe. BUCHAREST REAL ESTATE CLUB`s key question in the context: How will Romania and ECE private Real Estate sector will benefit from?