Chinese investors sold $1B in US real estate in Q3

They were net sellers for the second straight quarter

TRD NATIONAL /
Dec.December 06, 2018 08:30 AM

Chinese investors offloaded more than $1 billion in U.S. properties in the third quarter. (Credit: iStock)

Chinese investors keep retreating from the U.S. real estate market.

They offloaded more than $1 billion in U.S. properties in the third quarter, the Wall Street Journal reported. Meanwhile, insurers, conglomerates and other big investors from the country purchased $231 million of property.

“This has to do more with a change in how capital is permitted to behave rather than Chinese investors saying ‘I don’t like the U.S.’,” Jim Costello, senior vice president at Real Capital Analytics, told the Journal.

The Chinese government has tightened capital controls and put a damper on companies’ acquisitions abroad. Investors, as a result, have sold assets and made fewer deals abroad.

This marked the second quarter that Chinese investors were net sellers of U.S. property. The second quarter was the first time that happened since 2008. Ping An Insurance Group Co. of China and partners sold a 13-story Boston office building for $450 million, the largest sale by a Chinese investor during the third quarter, the report said.

Over the years, Chinese investors have spent tens of billions of dollars to buy U.S. real estate — sometimes well beyond market prices. Anbang Insurance Group’s $1.95 billion acquisition of the Waldorf Astoria in 2015 was the highest price ever for a U.S. hotel.

In New York, SL Green Realty bought a $148 million stake in HNA Group’s 245 Park Avenue. The struggling Chinese conglomerate paid $2.2 billion for the office tower in 2017, with $1.8 billion in debt.  [WSJ] — Meenal Vamburkar


Related Articles

arrow_forward_ios
Gov. Andrew Cuomo (Getty; iStock)

New York City lifts lockdown for some Covid hot spots

New York City lifts lockdown for some Covid hot spots
518 Broadway (Google Maps)

Four years vacant: Landlord offers dire outlook for Soho building

Four years vacant: Landlord offers dire outlook for Soho building
Sam Chang and TownePlace Suites by Marriott at 324 West 44th Street (Google Maps)

Hotelier Sam Chang’s businesses snagged millions in PPP loans

Hotelier Sam Chang’s businesses snagged millions in PPP loans
Vornado CEO Steven Roth with 1535 Broadway and 220 Central Park South (Getty, VNO, Google Maps)

Vornado sees $100M retail JV loss, $190M in 220 CPS gains

Vornado sees $100M retail JV loss, $190M in 220 CPS gains
Gov. Andrew Cuomo (Getty, iStock)

Commercial eviction and foreclosure ban extended until January

Commercial eviction and foreclosure ban extended until January
The Manhattan office market’s overall vacancy rate rose to a 24-year high of 13.3% in the third quarter (iStock)

Cushman & Wakefield paints bleak picture for Manhattan office market

Cushman & Wakefield paints bleak picture for Manhattan office market
Travis Kalanick (Getty; iStock)

Travis Kalanick cooks up a real estate empire

Travis Kalanick cooks up a real estate empire
Nightingale's Elie Schwartz and Madison's Brian Shatz (Whale Square)

Nightingale buys Whale Square in Sunset Park for $84M

Nightingale buys Whale Square in Sunset Park for $84M
arrow_forward_ios

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

Loading...