The Russia-China Investment Fund (RCIF) – a private equity fund focused on investment opportunities in the two countries across a board range of sectors – is investing in tourism and senior living infrastructure in China and Russia, while also funding the construction of the first railway bridge on the border between the two countries, the fund announced during President Putin’s visit to Shanghai this week.
Tapping China’s growing demand for tourism and senior living infrastructure, the RCIF has signed a memorandum of understanding with Vcanland to invest in desirable tourism destinations across both countries including Hainan in China and Lake Baikal, Vladivostok and the Sochi region in Russia, as well as in the senior living sector in China, according to a statement.
The two parties will spend a total of $800 million (€584 million), the statement said.
The Russian travel and tourism industry is expected to grow at 4 percent annually, and tourism between Russia and China will grow even faster. China is the second most popular destination for Russian tourists, whilst Russia is the third ranked destination of choice for the Chinese, co-CEO of RCIF Kirill Dmitriev said.
Vclander is a developer of tourism infrastructure and senior living communities in China.
At the same time, the RCIF has partnered with OJSC Far East and Baikal Region Development Fund to construct the first ever railway bridge over the Amur River on the border between Russia and China, the firm said, without specifying how much it will invest.
The new bridge will have a capacity of up to 21 million tonnes per year and will connect the Jewish Autonomous Region with the Chinese province of Heilongjiang.
RCIF was created by the Russian Direct Investment Fund (RDIF) and China Investment Corporation (CIC), China’s sovereign wealth fund.
RDIF was established in 2011 to make equity co-investments, primarily in Russia alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy.