Commercial Real Estate

Chinese Real Estate Developers Look Outward at ‘Gateway Cities’

Chinese Real Estate Developers Look Outward at ‘Gateway Cities’

After two major acquisitions in Los Angeles by Chinese real estate investors, the LA Times reports that major Chinese developers will continue to look at gateway cities like Los Angeles to get a foothold in the United states. With investment options slowing down within China, developers are looking for “shovel ready” projects that will return investments quickly and diversify assets outside of China.

Metropolis - Downtown Los Angeles Financial District.

Metropolis – Downtown Los Angeles Financial District.

Shanghai-based Greenland Group, who has projects in Asia, Australia, the U.S. and the U.K., is one of the few property developers getting involved in Los Angeles, with their Metropolis megaproject in the Financial District, which is rumored to involve a 19-story hotel and a 38-story residential tower. (It’s worth noting that Greenland is short $90 million in funds and will likely look for tax credits from the city.)

With the Chinese government looking to slow down land development to avoid a real estate bubble burst (a la United States circa 2007), Chinese developers will continue to look at population centers like L.A., San Francisco and New York, who have large Asian populations and major real estate opportunities. Laurie Lustig-Bower of the CBRE Group, who was involved in the Greenland Group deal, says that more Chinese Investment will be coming. “China may devalue its currency, so it behooves Chinese to move out as much money as they can now at its current value,” she said. “I think we’re on the front end of this wave.” It will be an interesting trend to keep an eye on.

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RT @REoptimizer: 4 Myths About Commercial Real Estate...Debunked #CRE https://t.co/1UhWY0xkD1 https://t.co/kWJbGXhSMa

RT @SeattlesBanker: OCC seeks to raise appraisal thresholds for commercial real estate loans https://t.co/4MCDfFvzyD

RT @seattlepi: Commercial real estate sellers are trying some new angles in selling properties for development in Seattle. https://t.co/7dO…

RT @EW: ICYMI: Netflix says more #ArrestedDevelopment is in the works: http://t.co/ZbHdbixpKF http://t.co/Lqg5jBp69i

Address of Real Bluth Model Home REVEALED #ArrestedDevelopment: http://t.co/1qNT2TPwz0 http://t.co/gjcWN8U7HL

Art Stable, by Olson Kundig Architects, Seattle, Wash. The live/work loft project includes a seven-s http://t.co/6Oi9pWs1BS

Aros: Federal Center South Building 1202, Seattle, Washington. Commercial Real Estate #commercialre http://t.co/lRX2VhtOZ5

RT @bohamrick: 7 Apps Every Commercial Real Estate Broker Needs https://t.co/6OdRC3Fubg
RT @richdadedu: What Are The 3 Key Metrics For Commercial Real Estate? https://t.co/aciBdlr9FJ - Attend our next online training: https://…
RT @NAR_Research: Trends, opportunities, and potential speed bumps to look out for in commercial real estate #CRE: https://t.co/oaytzsvIbu…
RT @REoptimizer: 4 Myths About Commercial Real Estate...Debunked #CRE https://t.co/1UhWY0xkD1 https://t.co/kWJbGXhSMa
RT @SeattlesBanker: OCC seeks to raise appraisal thresholds for commercial real estate loans https://t.co/4MCDfFvzyD
RT @seattlepi: Commercial real estate sellers are trying some new angles in selling properties for development in Seattle. https://t.co/7dO…
RT @EW: ICYMI: Netflix says more #ArrestedDevelopment is in the works: http://t.co/ZbHdbixpKF http://t.co/Lqg5jBp69i
Address of Real Bluth Model Home REVEALED #ArrestedDevelopment: http://t.co/1qNT2TPwz0 http://t.co/gjcWN8U7HL
Art Stable, by Olson Kundig Architects, Seattle, Wash. The live/work loft project includes a seven-s http://t.co/6Oi9pWs1BS
Aros: Federal Center South Building 1202, Seattle, Washington. Commercial Real Estate #commercialre http://t.co/lRX2VhtOZ5