The Chinese don't buy Prada bags via the internet: Allianz Real Estate boss

The Chinese don't buy Prada bags via the internet: Allianz Real Estate boss
The Chinese don't buy Prada bags via the internet: Allianz Real Estate boss

Allianz plans to boost its real estate investment in China, announcing the launch of a $US750 million ($992 million) fund that targets malls in major cities.

The German insurer and asset manager expects outlet shopping in China will continue to grow despite threats from online stores and a slowing economy.

Allianz Real Estate, Allianz's $63.5 billion property investment arm, launched the China-focused fund in partnership with investor TH Real Estate earlier this month.

Allianz will be the anchor investor owning 30 percent of the fund.

"China will become one of the top markets for us in Asia," Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate, told Reuters.

He expects to grow Allianz's real estate portfolio in China to more than €1 billion ($1.18 billion) over the next 12 months, from about €760 million by the end of this year.
 
Last year, the number was €100-150 million.

"Even if there is a slowdown, China still has 5-6 per cent annual GDP growth, right? In my mind, 5-6 per cent growth is still one of the best growth in the world," Desai said.

He also sees limited threat from China's booming online shopping, saying people don't buy Prada bags via the internet.

"People are not buying branded products online; people are buying day-to-day stuff online from Alibaba."
Tags: 
China Luxury

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