Chinese investors, the second-biggest overseas buyers of US residential real estate, are building up portfolios of US commercial property as they look for new avenues of diversification. Chinese entities announced more than $5.89 billion in projects in January-October, nearly six times the $996 million for all of 2011 and 2012 combined, data from New York-based consultancy Rhodium Group show.

“There is a lot of upside,” said Thilo Hanemann, Rhodium’s research director. “We are at the beginning of a structural increase of Chinese investment in US commercial real estate.”

Greenland Holding Group Co completed a deal that will give the Shanghai-based developer a 70 per cent stake in Forest City Enterprises Inc’s Atlantic Yards, a 22-acre commercial and residential project in Brooklyn, New York. The deal, which is expected to require $4.8 billion worth of investment over eight years, is the largest property transaction by a Chinese company in the US.

China’s push into US property is underpinned by declining investment returns at home, a growing desire by wealthy individuals and developers to diversify their holdings overseas, and property companies looking to capitalize on offshore migration.

 

Relevant News in Chinese: 中国资金加速进军美商业地产 成第二大海外投资客

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