Chinese investors go condo in New York
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.