Chinese investors are about to become landlords to brands such as Zara and H&M in two European countries.

China’s sovereign wealth fund has spent euro 1.3 billion (US$1.4 billion) on a portfolio of retail properties in France and Belgium, acquired from a fund managed by CBRE Global Investors.

The properties have 221,000 sqm of leased space.

CBRE Global Investors said in a statement it had acquired the properties with affiliates of AEW Europe.

The Chinese fund, along with investors from all over the globe, is taking advantage of a weakened euro and early signs of economic recovery in the continent to make capital gain.

This year has seen an estimated 25 per cent increase in foreign property investment in Europe, including retail, office and warehousing properties.