Rail network
China to make massive investment in UK infrastructure. Reuters

China is planning massive investment in the UK infrastructure by 2025, as Beijing seeks a safe haven for outbound investment, according to research conducted by London-based Centre for Economics and Business Research and the law firm Pinsent Masons.

The Financial Times, citing the research, reported that China is set to invest £105bn ($169bn, €133bn) in British infrastructure by 2025. The world's second largest economy will primarily invest in the UK's energy, property and transport infrastructure.

China has already invested £11.7bn in Britain between 2005 and 2013. The investment includes sovereign wealth fund China Investment Corporation's acquisition of a 10% stake in Thames Water, Britain's biggest water utility.

The spending is expected to increase significantly, as China looks for safe haven assets to invest in.

The investment would be a "game changer" for the UK, according to Richard Laudy, a partner at Pinsent Masons.

"We expect this to be the beginning of a major trend as a trickle of Chinese investment turns into a wave over the coming decade," Laudy added.

The UK is expected to rank No 3 in attracting investment from China behind the US and Japan, according to the report.

In the first half of 2014, Britain received a total of £2bn investment in its infrastructure including property from China, the report said.

Prominent investment deals include Sanpower's $790m investment in April in House of Fraser and the $187m real estate investment by China Construction Bank in Old Broad Street in the City of London.

However, most of the investments were in projects that deliver safe returns.

China's increased investment also comes as pension funds in East Asia and sovereign wealth funds of the Middle East are actively seeking investment options in the country.

However, China's move to sell equipment and engineering services may not succeed in the UK, as Chinese standards may not be recognised in the country, the report added.

As a result, Chinese companies are likely to form partnerships with UK companies to enter the European market.