Chi­nese in­vestors go condo in New York

China Daily (Canada) - - FRONT PAGE - By ZHENG XIN in New York zhengxin@chi­

Re­cent in­vest­ments by Chi­nese com­pa­nies in Man­hat­tan con­do­minium projects may sig­nal a move to­ward di­ver­si­fi­ca­tion, ac­cord­ing to a re­searcher with a global mar­ket­ing com­pany.

Shang­hai-based con­glom­er­ate Fo­sun Group ac­quired an 80 per­cent stake in a 47-story condo tower to be built near the Em­pire State Build­ing, and Euro Prop­er­ties based in Hong Kong will put up a 29-story build­ing on East 59th Street.

“In­vest­ing in con­dos might be gain­ing more pop­u­lar­ity thanks to the in­creas­ing de­mand from Chi­nese oversea stu­dents and the wealthy Chi­nese who come to the United States for va­ca­tion with eas­ier visa ap­pli­ca­tion,” said Derek Dong, group ac­count direc­tor of re­search agency Mill­ward Brown, a global mar­ket-re­search firm based in New York.

Dong said China’s over­seas prop­erty in­vest­ments will be­come more fre­quent and di­ver­si­fied, cit­ing Chi­nese con­glom­er­ate Fo­sun Group’s part­ner­ship with devel­op­ment com­pany JD Carlisle for a stake in an 800- foot, 180- unit condo tower at 126 Madi­son Av­enue. The size of the stake has not been re­vealed.

“It’s a wise choice to work with lo­cal part­ners as the big­gest chal­lenge for most Chi­nese de­vel­op­ers is the lack of pro­fi­cient knowl­edge on the lo­cal mar­ket,” said Dong. “The Chi­nese de­vel­op­ers have the abil­ity to source build­ing ma­te­ri­als from the coun­try and they know how to bring the rich Chi­nese buy­ers to the US devel­op­ment, all they need is a part­ner familiar with lo­cal stuff.”

“Fo­sun is con­fi­dent that this prop­erty will be viewed in­ter­na­tion­ally as an­other iconic New York City tower,” Alex Gong, ex­ec­u­tive pres­i­dent of Fo­sun Prop­erty, was quoted as say­ing by the Real Deal.

In 2013, Fo­sun ac­quired One Chase Man­hat­tan Plaza for $725 mil­lion and re­named it 28 Lib­erty.

Other con­do­minium projects by Chi­nese in­vestors in New York City in­clude a 22-acre res­i­den­tial and com­mer­cial project in Brook­lyn by China’s Green­land Hold­ing Group Co, which will hit the mar­ket this sum­mer af­ter more than a decade of plan­ning.

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