It is no longer a secret that Asian investors have a tremendous appetite to acquire New York and US real estate. I am pleased to say we have completed well over $3 billion of transactions with Asian investors over the last several years. To state the obvious, the Chinese markets are in financial disarray with no clarity as to how their economy is going to preform prospectively.
One good example of the declining Chinese economy is Jack Ma’s financial interest in Alibaba, which was previously worth $18.5 billion and is now worth half of that and is expected to dwindle further. As such, the Chinese economy does not seem poised for growth, and this is one of the key factors motivating Asian investors from Malaysia, Singapore, Hong Kong, Korea and China to invest heavily in the United States.
One thing for sure is that THE CHINESE KNOW HOW TO BUILD, and their preferred asset class in the United States appears to be development properties and in particular luxury condominium developments, although there have been a large number of hotel acquisitions by the Chinese including the Baccarat Hotel in New York by Chinese company Sunshine Insurance Group, Malaysian giant Jynwel Capital’s investment in the Park Lane Hotel in New York, Wanda Group’s $900-million One Beverly Hills acquisition and Anbang Insurance’s acquisition of the Waldorf-Astoria in New York.