Chinese firms have spent $9.3B on US real estate in 2016

They’re the most active foreign contingent by far, more than doubling Canadians

TRD New York /
May.May 25, 2016 11:56 AM

The U.S. commercial property market may be showing signs of slowdown, but that’s not stopping Chinese investors.

Firms based in the country spent a hefty $9.3 billion on a total of 47 American commercial real estate properties so far this year, more than doubling the second largest national contingent, Canadians, who spent about $4.2 billion.

The Chinese investors’ total already far exceeds last year’s tally of $6 billion spent on U.S. commercial properties, the Wall Street Journal reported, citing Real Capital Analytics data. (A report from the Asia Society, however, pegged Chinese investment in U.S. commercial real estate in 2015 at $8.5 billion, a record.)

China Life Insurance Group was recently revealed as an equity partner with Scott Rechler’s RXR Realty on the developer’s $1.65 billion purchase of 1285 Sixth Avenue.

Chinese buyers are said to be motivated by a desire to move capital out of their country in the face of economic and currency volatility there. The Chinese government has also loosened rules over the past years on the movement of capital out of the country.

Still, the numbers could have been much higher. Another Chinese insurer, Anbang Group, bid a staggering $14 billion for Starwood Hotels & Resorts earlier this year, but pulled out at the last minute, facing uncertainty about its financing and about Chinese regulators’ stance on the deal.

Though Chinese investors have been buying heaps of property, some experts at a panel earlier this month said they often know less than they should about their American investments. The Asia Society report, created by Rosen Consulting Group, projected that Chinese investors will dump $58 billion into the U.S. commercial property market between 2016 and 2020. That report also warned of a potential slowdown over the next 18 to 24 months as the Chinese government wrestles with its slumping economy. [WSJ]Ariel Stulberg


Related Articles

arrow_forward_ios
RXR's Scott Rechler and a rendering of 55-15 Grand Avenue (Getty, RXR Realty)

Amazon’s future Queens warehouse, Robert DeNiro’s film studio among top NYC projects

Amazon’s future Queens warehouse, Robert DeNiro’s film studio among top NYC projects
Airbnb’s Brian Chesky, RXR Realty’s Scott Rechler and 75 Rockefeller Plaza (Credit: Rechler by Eugene Gologursky/Getty Images, 75 Rockefeller)

Airbnb and RXR nix resi conversion deal at 75 Rock

Airbnb and RXR nix resi conversion deal at 75 Rock
RXR Realty's Scott Rechler and 2413 Third Avenue in the Bronx (Credit: Getty Images; Google Maps)

RXR planning 200-unit South Bronx project

RXR planning 200-unit South Bronx project
James Whelan, Scott Rechler and Jonathan Gray (Credit: Rechler by Eugene Gologursky/Getty Images; Whelan by Axel Dupeux; Gray by Drew Angerer/Getty Images; CDC)

With New York in crisis, real estate pitches in

With New York in crisis, real estate pitches in
A photo illustration of Scott Rechler and the SS United States (Credit: Eugene Gologursky/Getty Images for National Eating Disorder Association, Brian W. Schaller via Wikipedia)

RXR is looking for space…to park a $500M ocean liner

RXR is looking for space…to park a $500M ocean liner
Colony Capital's Tom Barrack and RXR Realty's Scott Rechler (Credit: Getty Images)

Colony Capital sells stake in RXR Realty

Colony Capital sells stake in RXR Realty
Larkin Plaza (Credit: Rendering courtesy of SLCE Architects)

RXR project among developments caught up in alleged Gambino mob scheme

RXR project among developments caught up in alleged Gambino mob scheme
Scott Rechler and clockwise from top left: 2455-2457 Third Avenue, 150 West 48th Street and 42-11 9th Street (Credit: Google Maps, Getty Images)

RXR’s Long Island City development was the biggest new project filed in December

RXR’s Long Island City development was the biggest new project filed in December
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...