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Chinese Cash Pours Into U.S. Real Estate

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The 20 billion dollars of Chinese investment in the U.S. real estate markets over the past 12 months is a prelude to what could be the greatest inflow of foreign real estate capital into the U.S. markets in history. – Marc Renard

Marc Renard, Executive Vice Chairman in Cushman & Wakefield’s Capital Markets Group, was recently featured on Bloomberg’s Daybreak Asia, a television program that delivers pressing global business and financial information on U.S. and Asian markets. Renard, an industry veteran who joined the firm in 1983, has led the sale efforts of more than 500 properties with an aggregate value in excess of $25 billion and has been involved in many of the most high-profile deals with Chinese investors on the West Coast. He spoke with Bloomberg anchors Betty Liu and Yvonne Man about the influx of Chinese capital into U.S. real estate markets.

Highlights from the interview:

  • “The Chinese have realized what other global investors have, that the U.S. is the most stable, liquid, and most transparent market and in return offers the greatest prospects for strong, risk-adjusted returns.”
  • “Chinese investors are very nimble. They are already figuring out new ways to invest in real estate throughout the capital stack. They’re investing in preferred equity, mezzanine debt, construction lending, and joint venture equity.”
  • “Five out of the largest 10 transactions in the United States last year were done by Chinese investors. They tend to focus on three primary types of assets: luxury hotels, trophy office buildings, and large mixed-use developments.”
  • “The Chinese are invested in 35 states in the U.S.: 46% of capital allocation last year was to New York, about 15% to San Francisco, and 7% to Los Angeles. I think you will see some migration of capital to second-tier markets but for the most part they are focused on the global gateway cities and the most liquid markets in the U.S.”

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Click here to view the full segment on Bloomberg TV!

Click here to download the 2016 China-US Inbound Investment Capital Watch by Xinyi McKinny, Senior Managing Director, China Direct Investment


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