Greenland Chairman Zhang Yuliang has added Korea, Russia and Japan to his target list this year
One of China’s most prolific overseas real estate investors appears intent on adding another country to its portfolio as Greenland Group announced an investment deal with one of Japan’s largest financial conglomerates this week.
Shanghai-based Greenland said in a statement that it had signed a memorandum of understanding with Mizuho Financial Group, a Japanese banking group with more than $2 trillion in assets, to secure the Japanese firm’s assistance in acquiring and developing land in Japan, as well as in helping Greenland to finance its deals.
Greenland, which in 2014 was China’s largest real estate developer by sales, has already acquired projects in Australia, Canada, Malaysia, South Korea, the UK and the US in the past three years, giving it a presence in more countries than any other mainland developer.
Greenland Targetting Development and Existing Assets
Mizuho’s Yasuhiro Sato signed the deal with Greenland
Government-backed Greenland is reportedly interested in acquiring existing residential or office buildings in Japan, as well as in taking on new urban development projects. According to accounts in the Japanese press, Mizuho is advising the developer on potential targets and a short-list of potential properties has already been drawn up.
Mizhuo made it clear that its role would go beyond investment advisory services to include helping to arrange financing.
“Besides providing information on land needed for real estate development in Japan, we will support funding through such steps as the issuance of yen-denominated bonds,” Mizuho President Yasuhiro Sato was quoted as saying in the Nikkei Asian Review. Mizuho is also said to be in line to provide asset management services for any potential acquisitions.
Shanghai Group’s Focus Goes Global
Greenland’s interest in Japan appears to be part of an ever-widening investment bulls-eye for the ambitious state-run firm, which less than a week ago announced its intention to invest in infrastructure and property projects in Moscow.
Through the end of July Greenland Group had invested more than $1.13 billion in overseas projects since the beginning of 2014. The company’s flurry of outbound deals, which also includes acquisitions this year in South Korea, makes it the second-biggest cross border investor among China’s real estate developers during the period, according to data compiled by Mingtiandi.
China Invades Japan
Greenland’s interest in the Japanese market comes as China’s domestic market becomes more challenging and Japan’s economy appears to be recovering after decades of stagnation.
In the last year investment conglomerate Fosun International, which is also based in Shanghai, has purchased two office buildings in Japan as part of its overseas expansion. Also, during February this year, Chinese sovereign wealth fund CIC joined with LaSalle Investment Management to purchase the Meguro Gajoen complex in Tokyo for $1.2 billion.
Just last month Anbang Insurance, which burst onto the global property scene in 2014 by acquiring the Waldorf Astoria hotel in New York for $1.95 billion, was said to be offering at least $1 billion to acquire Japanese real estate asset manager Simplex Investment Advisors.
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