The Real Deal New York

Chinese investment in U.S. senior housing grinds to near halt

Chinese investors haven't made purchase of $2.5M or more since early 2017
April 21, 2018 12:00PM

CASL Senior Apartments in Chicago (credit: Wikimedia Commons)

Chinese investment in senior housing in the United States has slowed to a trickle following a $1 billion-plus buying spree over the past few years.

Chinese investors haven’t made a transaction in U.S. senior housing worth more than $2.5 million since the first quarter of 2017, according to data from Real Capital Analytics cited in Senior Housing News.

Since the beginning of 2014, Chinese investors bought about $1.4 billion worth of senior housing properties in the U.S.

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The Welltower real estate investment trust, which is building a 15-story senior housing faciltity in Midtown with Hines, sold a 75 percent stake in a portfolio of properties in late 2016 to Union Life Insurance and Cindat Capital Management for $930 million.

In the first quarter of 2017, Chinese buyers spent $629 million on U.S. senior housing, or roughly 13.4 percent of the market. But as Chinese regulators have clamped down on overseas investing, Chinese purchases in U.S. senior housing have dried up.

John Stasinos, head of Cindat’s healthcare group, said there remains “intense appetite” among Chinese capital providers for U.S. senior housing properties. [SHN] – Rich Bockmann