A new article from the Wall Street Journal titled China Moves to U.S. Projects examines the increase of China-based investors taking on distressed properties in U.S. cities. Some notable recent transactions include: Dongdu International bought two of Detroit's better-known buildings, including the former home of the Detroit Free Press, for $13.6 million; Beijing's HNA Property Holdings, a subsidiary of a Chinese airline, bought New York's Cassa Hotel in 2011 for $130 million; Fosun International Ltd. purchased One Chase Manhattan Plaza for $725 million; and earlier this year, billionaire Zhang Xin bought a stake in the General Motors building overlooking Central Park, in a deal that valued the tower at $3.4 billion.
An excerpt from the article follows:
The discounted prices on distressed U.S. real estate offers "a once in a lifetime opportunity," says Zhang Mingeng, chairman of Grand China Fund, which manages yuan-denominated funds investing $4 billion in Chinese real estate and a $60 million dollar-denominated fund investing in the U.S.
Overall Chinese investment in U.S. property has risen sharply this year as Beijing has encouraged companies to diversify and spend foreign capital reserves. Chinese property deals in the U.S. already have reached $1.7 billion in 2013, up from $1.1 billion in 2011, according to Real Capital.
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