Chinese investment in the US real estate market took a new turn recently when two of the country’s largest real estate developers were said to be planning property projects in America. First, China Vanke, the country’s largest home builder by sales, announced that it is targeting the US for its first overseas project. As reported by Reuters, Vanke’s President, Yu Liang said,
“International expansion is going to be an important strategy. Because cash is not our forte, we would need a partnership, but we have the expertise in terms of customers.”
Vanke’s interest in developing projects in the US is reportedly driven by the interest of its Chinese customers in American real estate investment opportunities. The company is also reportedly considering projects in Hong Kong, South Korea and Australia.
Vanke recently completed the acquisition of Winsor Properties, a Hong Kong shell company will allow it to raise offshore capital for international expansion.
On the same day that Vanke made its announcements, plans were leaked regarding Beijing developer Vantone’s discussions with authorities in San Francisco to re-develop the city’s Pier 19 as a tourist destination with Chinese characteristics.
As reported by Bloomberg, the discussions, which are still reportedly in the preliminary stages, involve converting the 19,100 square meter warehouse near Fisherman’s Wharf for use as offices, meeting rooms, galleries or a hospitality center for Chinese business people.
At present, a US$300 million renovation of Piers 15-17, next to Pier 19, is under way for the Exploratorium Science Museum. The National Basketball Association’s Golden State Warriors in May proposed a $500 million arena at Piers 30-32.