Greenland pulls out of San Fran biotech project

The Chinese developer sold its stake to Kilroy Realty

Los Angeles /
Jun.June 05, 2018 10:10 AM
Kilroy Realty CEO John Kilroy, Greenland USA CEO Hu Gang, and an early rendering of the Oyster Point project

Chinese firms continue to pull out of the U.S. real estate market as quickly as they swooped in, with Greenland Group being the latest.

The U.S. subsidiary of the Shanghai-based developer is divesting from a massive San Francisco-area biotech campus development, according to the Wall Street Journal. Greenland has sold the 40-acre property to Los Angeles-Kilroy Realty Corp. for $308 million.

Greenland USA purchased the site in 2016 in partnership with Ping An Trust, Agile Group Holding, and Poly Sino Capital for $171 million, with plans to build 1,200 residential units. The partners dropped that plan amid local opposition to residential development, according to the Journal.

Kilroy plans to construct an 11-building laboratory and office campus called Kilroy Oyster Point over four phases.

It’s the second large project that Greenland has pulled out of in recent months. In November, the firm backed away from a plan with Trammel Crow to build a two-tower mixed-use project at a 15.6-acre site in Hollywood. It’s also looking to sell the hotel portion of its $1 billion Metropolis mixed-use project in Downtown, a potential sign of trouble.

Greenland isn’t the only Chinese firm downsizing its operations stateside. HNA Group is selling parts of its hotel portfolio, including its interests in Hilton Worldwide Holdings. HNA also just sold a San Francisco office tower on Mission Street to Northwood Investors for $300 million.

Chinese investment in commercial real estate in the U.S. has also dropped dramatically. Chinese companies funneled $7.3 billion into U.S. commercial real estate in 2017, a sharp decline from 2016, when firms spent $16.2 billion, according to a recent report by Cushman & Wakefield.

The pullback is largely pinned on strict capital controls put in place by the Chinese government last year to temper the flow of capital into the United States.  [WSJ] — Dennis Lynch 


Related Articles

arrow_forward_ios
Mariposa on 3rd
CGI Strategies secures $41.5M loan on Koreatown apartment complex
CGI Strategies secures $41.5M loan on Koreatown apartment complex
Gov. Gavin Newsom with Doug Ose and John Cox (Getty, Twitter)
Real estate execs among challengers in Newsom recall
Real estate execs among challengers in Newsom recall
2575 E El Presidio Street and Thor Equities Chairman Joe Sitt
Thor Equities pushes into LA industrial market
Thor Equities pushes into LA industrial market
Rendering of the new Pasadena office and existing building inset. (JLL, 101 South Marengo)
Let there be light: Atlas Capital will overhaul windowless Pasadena office block
Let there be light: Atlas Capital will overhaul windowless Pasadena office block
PPIH President & CEO Naoki Yoshida and TPG Capital Partner Paul Hackwell (Linkedin, Getty)
TPG Capital selling SoCal-based Gelson’s Markets
TPG Capital selling SoCal-based Gelson’s Markets
MDT Properties Marc Tavakoli and 627-631 N. Dillon Street (Google Maps, iStock/Illustration by Alexis Manrodt for The Real Deal)
Shovel-ready site in Silver Lake trades for $3.5M
Shovel-ready site in Silver Lake trades for $3.5M
(iStock)
LA County sued over commercial eviction moratorium
LA County sued over commercial eviction moratorium
The future of San Francisco’s Oceanwide Center is up in the air again (Getty, Foster and Partners)
Contractors pull out as Oceanwide Center sale falls through again
Contractors pull out as Oceanwide Center sale falls through again
arrow_forward_ios

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

Loading...