Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Remember Me

Lost your password?

Register Now

Loading...
  • Capital Markets
  • Events
    • Mingtiandi 2025 Event Calendar
    • Mingtiandi APAC Residential Forum 2025
    • Mingtiandi Singapore Forum 2025
    • Mingtiandi APAC Logistics Forum 2025
    • Mingtiandi APAC Data Centre Forum 2025
    • Mingtiandi Tokyo Forum 2025
    • More Events
  • MTD TV
    • Residential
    • Logistics
    • Data Centre
    • Office
    • Singapore
    • Tokyo
    • Hong Kong
    • All Videos
    • Post-Event Stories
  • People
    • Industry Moves
    • MTD TV Speakers
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

China’s Bad Bank Leads $304M Chicago Office Tower Investment

2014/03/17 by Michael Cole Leave a Comment

311 S Wacker Drive Chicago

311 S Wacker Drive stands just in front of the Willis  Tower (formerly known as the Sears Tower)

A new player may be emerging in China’s overseas investment surge as an investment vehicle majority invested by China Cinda, the nation’s “bad bank,” together with a US partner spent $304 million to purchase a 65-storey office building in Chicago.

The deal between Cindat Capital Management and Chicago-based Zeller Realty Group last Tuesday to buy the tower at 311 South Wacker Drive in the US’ third largest city was confirmed by Zeller Executive Vice President Ari Glass.

According to a story in the Wall Street Journal, Cindat now owns approximately 70% of the company controlling the building, while Zeller owns the remainder and is the managing partner.

New Force Emerging Among China’s Overseas Investors

China Cinda, which according to informed sources is the majority investor behind Cindat, is the listed wing of China Cinda Asset Management, which was formed in 1999 to buy soured loans at a discount from China’s giant state-owned lenders and work them out for a profit. China Cinda’s $2.5 billion IPO in December last year has left the investment firm with a healthy balance sheet and funds in need of investment.

Cinda already invested an undisclosed amount last month to join with developer China Vanke in a residential project in New York where sources close to the deal say that the investment firm’s role was to provide financing for the development project.

Now by acquiring a mature office asset in Chicago Cinda may be signalling that it is ready to join other major Chinese investors, such as Greenland Group, Fosun, and Vanke in acquiring what are seen as undervalued assets in the US market.

Greenland has grabbed the most headlines for its US deals with billion dollar projects in Los Angeles and Brooklyn, and Fosun spent $725 million to acquire One Chase Manhattan Plaza in New York last year. In addition to its residential project in Manhattan, Vanke also has invested in a development in San Francisco with US developer Tishman Speyer.

Showing Investors Some Good News

For Cinda, the Chicago real estate deal may be a chance to show investors some useful activity.

While the stock initially soared following its debut, its share price is down 24 percent since Feb. 14th, and the next earnings report is due on March 27th.

There could also be some good news for Chicago investors out of this deal, as the Cinda acquisition is the first major investment by a Chinese firm in the US outside of New York, Los Angeles and San Francisco.

Buying Like a Bank

According to information from Real Capital Analytics (RCA), in acquiring the 130,942 square meter office building for $304 million, Cinda is paying approximately $238 per square foot of space, and getting what looks like a pretty good deal for a prime building with estimated occupancy of 90 percent.

Figures from RCA show the average investment price for Chicago office space in the fourth quarter of 2013 increased by 27 percent over the same period a year earlier to reach $213 per square foot. In the third quarter the rate of increase had been 24 percent.

The move by Cinda and Zeller can also be seen as opportunistic, as the buyers are taking advantage of an ongoing legal dispute between the now former owners of the building to acquire an asset that might not otherwise come onto the market.

So while the history of Chinese investment in the US has yet to be written, at least this chapter makes it look like there may be a happy ending.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Outbound Investment Tagged With: China Cinda Asset Management, China Vanke, Cindat Capital Management, crebrief, Fosun International, highlight, Zeller Realty Group

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Mingtiandi Delivered

  • This field is for validation purposes and should be left unchanged.

MTD TV

Duke Lee, Head of Investment & AM, Pebblestone
APG, Pebblestone, Invesco See Korean Sheds Overcoming Trade War: MTD TV
Phoenix, CapitaLand, CPPIB, Ivanhoe Talk Japan, India Office Opportunities: MTD TV

More MTD TV Videos>>

People in the News

EQT_David Kim
Asia Real Estate People in the News 2025-06-21
singh-anshuman
Asia Real Estate People in the News 2025-06-16
Raymond Lee Paul Hastings
Law Partner Picks Up Hong Kong Home of Former Birmingham City Boss for $37M
Teo Chee Hean Temasek
Asia Real Estate People in the News 2025-06-09

More Industry Professionals>>

Latest Stories

Chan Hung Ming Grand Ming
Bain Capital in Exclusive Talks to Acquire Hong Kong Data Centre Projects for Up to $274M
Stuart Dawes Gateway
Aussie Shed Surge Continues with $87M Gateway Portfolio Disposal
EQT_David Kim
Asia Real Estate People in the News 2025-06-21

Sponsored Features

How to Create a Win-Win for Investors and Occupiers
Lingeage Logistics Cold Storage Complex
Mount Maunganui Cold Storage Facility for Sale
7 in 10 Senior Directors Confident in Data Centres, but Talent Shortage Will Widen

More Sponsored Features>>

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • Mingtiandi 2025 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Memberships
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2025 China Advertising Media Ltd (Samoa). All rights reserved.

We use cookies in accordance with our Privacy policy to provide the best user experience on Mingtiandi and to safeguard user data. By continuing to browse you consent to the policy. AcceptRefuse