Southern California hottest spot for Chinese real estate investment: report
Updated: 2016-01-15 05:57
By LIA ZHU in San Francisco(China Daiy USA)
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"In recent years, we have made acquisitions of six brand-name hotels throughout the US, which is driven by our long-term business strategy," said Zhang, also CEO of AVIC International USA. "By doing that, we are able to further learn US management skills and operations, so as to enhance our own hotel brand in China as well as expand to other developing countries."
Many Chinese companies view US real estate investments as a part of their global brand building and portfolio diversification strategy after years of success in China, according to Alan Chu, partner and China Business Network leader of PwC.
Oceanwide's real estate developments spread over major cities in China, however, it was still an unfamiliar name in US business circles when it acquired Fig Central for $200 million to develop a five-star hotel, condos and retail space in downtown Los Angeles at the end of 2013.
The US was a key area in Oceanwide's long-term "going out" strategy because of the robust recovery of the US economy and the path toward internationalization was to combine their experience of developing CBD in China with the local market, said Thomas Feng, CEO and President of Oceanwide Plaza LLC.
Additionally, the rapid increase in the number of Chinese tourists and students, and downtown Los Angeles' booming businesses offer even more reasons for Chinese companies to invest, creating the perfect storm of opportunities, said the report.
A large number of high-net-worth individuals from China consider Southern California a hot spot for overseas property.
In the 12-month period that ended in March 2015, Chinese investors became the largest buyers of residential property in total amount, sales volume and transaction value, with a total expenditure of $28.6 billion in the US, according to the National Association of Realtors.
China's individual overseas property investment is predicted to reach $35 billion in 2015. In the coming five to 10 years, the annual growth rate is anticipated to increase between 150 percent and 200 percent, according to the Annual Report on Chinese International Immigration of 2015.
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