US real estate market gets boon
Updated: 2014-03-31 10:58
By Chen Jia(China Daily USA)
In 2014, Fosun purchased 60-story Chase Manhattan Plaza in New York City for $750 million.
Greenland invested $1 billion in a downtown Los Angeles project, after it agreed to become the majority owner-developer of the $4 billion Atlantic Yards residential complex planned in New York City in 2013.
In 2013, Oceanwide spent $180 million to acquire a 4.6-acre site across in Los Angeles to build two hotels, apartments and retail space. Zarsion agreed to invest $1.5 billion to transform 65 acres industrial land in Oakland into a waterfront neighborhood with 3,100 homes. CEO of SOHO Zhang Xin paid $600 million for a 49 percent stake in the Park Avenue Plaza.
In 2012, HNA saved an office building on Sixth Avenue from foreclosure for $265 million. HNA also brought the boutique Cassa Hotel on Times Square.
At the event, American experts reached consensus that the Chinese real estate market is slowing down and Chinese government supports overseas investment and diversification, which will be a boon to US real estate in 2014.
Also, Chinese real estate development firms want to capitalize on their Chinese client base to invest in international real estate, according to their observations.
According to Kidder Matthews, most popular destinations for Chinese real estate investors include: New York City, Los Angeles, San Francisco Bay Area, Seattle, Chicago, Houston, San Diego and Washington DC. The targeting properties cover residential, mixed use, office, hotel and retail space.
These Chinese investors usually build up joint venture partnership with local developers or establishing own US-based company, said Whitney.
Also, leasing is a good way to start for traditional companies as the first step, he said.
"Many Chinese companies start with leasing small space. Now they are looking to acquire large headquarters buildings," he added.
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(China Daily USA 03/31/2014 page2)