Mid-East investors show interest in Grand Paris real estate7th June 2013
Investors from the Middle East are showing a great deal of interest in the financing of real estate construction in France's Grand Paris regional renewal plan. French media reports suggest the head of a large Saudi group wants to invest ‘€10m-€300m per project’.
The head of a major Qatari bank has also expressed interest in buying into firms investing in Paris region real estate projects.
How genuine this interest it remains to be seen, but the Grand Paris plans, launched by President Nicolas Sarkozy in 2007, are definitely creating a stir in the Paris property market. President François Hollande recently announced plans for a large 1--year investment program, and said his government expects the private sector to play a role, including foreign investment funds.
Prime Minister Jean-Marc Ayrault's March commitment to swiftly build the whole of the planned Grand Paris Express transport network, the key component of Grand Paris, was well received.
Grand Paris, launched by President Nicolas Sarkozy in 2007, is intended to modernise the region's transport infrastructure, develop new business clusters and build 70,000 new homes a year. The Grand Paris law does not allow private firms to invest directly in new transport infrastructure although the Société du Grand Paris, the body set up to build it, will need to borrow from private institutions.