Drawing of Fig Central showing Staples Center
The latest major purchase of US property by a Chinese developer is the acquisition of a US$200 million Los Angeles project by Oceanwide Real Estate Group (000046.SZ).
According to a recent report in the Wall Street Journal, Beijing-based Oceanwide, which is listed on the Shenzhen Exchange, has agreed to acquire a planned development project named Fig Central in the city’s downtown area just opposite the Staples Center sports arena, which is home to the LA Lakers basketball team.
The 223,000 square metre project would include a hotel, residential space and a shopping area. At present, no construction has started on the project, however, it is said to “shovel-ready.”
Beijing-based Oceanwide executed the transaction through its Tohigh Construction Investment subsidiary, purchasing the property from New York-based developer, The Moinian Group.
The figures on the planned investment were revealed in papers filed with the Shenzhen Stock Exchange, however, the acquisition costs were likely to be only a fraction of the $200 million amount.
Oceanwide Stock Swells on Acquisition
Shares in Oceanwide, which develops both residential and commercial projects in China had sunk as low as RMB 4.22 per share on December 23rd, but after the announcement on December 27th had climbed as high as RMB 4.64 per share. By the time the market closed on January 3rd the stock was trading at RMB 4.39 per share.
Buy-Out is the Latest US Deal From China
Oceanwide’s move continues to make the case for the US being the favorite destination for Chinese property investors.
During 2013, Fosun bought One Chase Manhattan Plaza in New York for US$725 million, China Vanke invested in San Francisco, and Greenland Group bought the Atlantic Yards project in New York, as well as the Metropolis project in Los Angeles.
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