U.S. Markets closed

China’s largest property developer is now buying American

Gwynn Guilford

Vanke’s CEO, Wang Shi, is making his company more of a global player. AP Photo/Michel Euler

The biggest residential property developer in China is making its first investment in the US. China Vanke will take a 70% stake in a San Francisco residential developments launched by Tishman Speyer, the US’s biggest commercial property developer, which will keep the remaining 30%. As the Financial Times points out, the deal size wasn’t publicized, but it was small enough that Vanke announced it on its chairman’s microblog (paywall), and not in securities filings.

Why now? Well, first, tight rules on home purchases in China aimed at curbing speculative investments, as well as overcapacity in smaller cities, may be prompting Vanke to hedge against a falling Chinese property market.

Also, growing numbers of Chinese are investing in overseas property, including some $7 billion in US homes last year, second only to Canadians. It’s not that easy to get a visa to the US, though, which means that some of these sales are done sight unseen—a trend that a Chinese property company with an international property portfolio could potentially benefit from. As the FT points out, this isn’t the first Chinese push into US property: last year, Xinyuan Real Estate bought a $54 million residential plot in New York.

In addition, there’s how Vanke is expanding. The developer has been gearing up its internationalization plan for a while. Last month it invested in a Hong Kong subway station development. The $21 billion developer also plans to shift some of its China-listed shares to the Hong Kong exchange (paywall), capitalizing on changes in Chinese securities rules. This would make it much easier for Vanke to raise foreign funds to invest abroad. (The San Francisco deal is still awaiting government permission for Vanke to change Chinese yuan into dollars.)

But unlike Japan’s trophy-property spending spree of the 1980s, the Chinese company appears to be taking a cautious approach. Vanke President Yu Liang has said in the past that that “at the core of any internationalization must be partnering with local companies” (link in Chinese). Its deal with Tishman Speyer—which, incidentally, is no stranger to Chinese real estate—is a sign that it is doing just that.



More from Quartz

  • Silicon Valley is so expensive that even Facebook and Apple employees can't afford to live near the office
    Business
    Business Insider

    Silicon Valley is so expensive that even Facebook and Apple employees can't afford to live near the office

    Silicon Valley's housing crisis is serious. A new report from Open Listings reveals that workers at five major tech companies, including Apple, Facebook, and Google, would have to spend over 28% of their salary to pay a monthly mortgage on a home near work. Software engineers at Apple have it worst.

  • This Is the Final Medal Count for Every Country at the 2018 Winter Olympics
    Sports
    Time

    This Is the Final Medal Count for Every Country at the 2018 Winter Olympics

    After 19 days of competition at the 2018 Winter Olympics in PyeongChang, South Korea, Norway came out on top of the final medal count. Norway’s dominance was apparent from the beginning of the Olympic Games, with 14 gold medal wins in sports like cross

  • 3 Cryptocurrencies That Could Still Double
    Business
    Motley Fool

    3 Cryptocurrencies That Could Still Double

    What we as investors witnessed from cryptocurrencies last year is something that may not be duplicated again. A single asset class gained more than 3,300% in market cap (almost $600 billion) over a span of just 12 months. After beginning January on a high note, cryptocurrencies fell off a cliff, losing 67% of their market cap, from peak to trough, between Jan. 7 and Feb. 6.

  • Buffett says Berkshire can handle $400 billion mega-catastrophe
    Finance
    Reuters

    Buffett says Berkshire can handle $400 billion mega-catastrophe

    Warren Buffett says: Bring it on. In his annual letter to shareholders of Berkshire Hathaway Inc , Buffett said "no company comes close" to his conglomerate in its ability to financially withstand even a mega-catastrophe that causes $400 billion of insurance losses. Buffett said the odds of such a catastrophe in any year is just 2 percent, but that Berkshire would lose only about $12 billion, a sum more than offset by annual profits from its non-insurance businesses.

  • Boeing to have 51 percent stake in venture with Embraer - paper
    Business
    Reuters

    Boeing to have 51 percent stake in venture with Embraer - paper

    Boeing Co (BA.N) will have a 51 percent stake in a joint company currently being negotiated with Brazilian aircraft maker Embraer (EMBR3.SA), O Globo newspaper columnist Lauro Jardim reported on Sunday. Boeing has agreed to a Brazilian government demand that the U.S. company have no more than a 51 percent controlling share, Jardim said, without citing sources. Embraer said it would not comment on the matter.

  • Trump officials fight eviction from Panama hotel they manage
    Finance
    Associated Press

    Trump officials fight eviction from Panama hotel they manage

    One of President Donald Trump's family businesses is battling an effort to physically evict its team of executives from a luxury hotel in Panama where they manage operations, and police have been called to keep the peace, The Associated Press has learned. Witnesses told the AP they saw Trump's executives carrying files to a room for shredding. Representatives of the hotel owners' association formally sought to fire Trump's management team Thursday by hand-delivering termination notices to them at the Trump International Hotel and Tower, according to a Panamanian legal complaint filed by Orestes Fintiklis, who controls 202 of the property's 369 hotel units.

  • Bitcoin Cash, Litecoin and Ripple Daily Analysis – 25/02/18
    Business
    FX Empire

    Bitcoin Cash, Litecoin and Ripple Daily Analysis – 25/02/18

    A promising start to Saturday’s session ended in yet another tumble for Bitcoin Cash, which has had a dire start to the year. Last weekend, the Bitcoin Cash rally kicked in late Saturday and came to an end in just a few hours, with Bitcoin Cash hitting a weekend high $1,630, an intraday gain of 7.77%, before tumbling to $1,392.3 just a few hours later. This Saturday’s moves were certainly shallower, Bitcoin Cash moving to a Saturday high $1,298.9, an intraday gain of 3.75%, before falling to a low $1,129.4.

  • Retiring at 62 vs. 70: Pros and Cons
    Lifestyle
    Motley Fool

    Retiring at 62 vs. 70: Pros and Cons

    When most people think of retirement planning, they think about how much money they need to save. Social Security benefits play a major role in deciding your retirement age, though it's important to remember that claiming benefits and actually retiring don't always go hand in hand. The earliest you can claim Social Security benefits is age 62, but you'll receive a cut in benefits for every month you claim before your full retirement age (FRA), which is between 65 and 67, depending on the year you were born.

  • New tax scam can cause entire refund to vanish
    World
    KGO – San Francisco

    New tax scam can cause entire refund to vanish

    The IRS told the I-Team that people are being targeted by scams from all directions. Not only are there fake IRS calls, but there are new tax scams gaining popularity, including one where your entire tax return can vanish.

  • 3 Cheap Dividend Stocks That Helped Warren Buffett Earn $3.7 Billion in Dividends in 2017
    Business
    Insider Monkey

    3 Cheap Dividend Stocks That Helped Warren Buffett Earn $3.7 Billion in Dividends in 2017

    Warren Buffett, the revered billionaire investor and Chairman and CEO of $500 billion holding company Berkshire Hathaway, just released his annual shareholder letter in which he discussed a number of intriguing topics. Perhaps the most noteworthy one was the revelation that Republican tax cuts contributed $29 billion to Berkshire Hathaway Inc. (NYSE:BRK.A)‘s bottom-line last year. That clearly proved irksome to Buffett, who supported Hillary Clinton during the 2016 Presidential Elections and was not fond of the idea of tax cuts for the wealthy. As Buffett made clear in the letter, the windfall “did not come from anything we accomplished at Berkshire.” The letter also revealed that Berkshire earned

  • America's Nightmare Flu Season Is Finally Coming to an End
    Business
    Fortune

    America's Nightmare Flu Season Is Finally Coming to an End

    The flu is on its way out. While still at epidemic levels, the historically bad 2017-2018 season has finally started to subside. Deaths caused by pneumonia and influenza fell to 9.5 percent of all fatalities across the country during the week ended Feb. 3, according to the Centers for Disease Control and Prevention’s most recent data.

  • These Companies Still Do Business With the NRA
    Business
    Esquire

    These Companies Still Do Business With the NRA

    From Esquire National Rifle Association members, who pay annual dues, are eligible for discounts at a variety of companies, from hotels to insurance firms. Gun-control activists have put out calls to boycott companies that do business with the NRA.

  • American in Custody After Severed Head Is Found in Japan
    News
    Time

    American in Custody After Severed Head Is Found in Japan

    An American man is in custody in Japan after authorities found a severed head in a suitcase left in a lodging facility. Japanese investigators said the 26-year-old American was seen on security footage with a 27-year-old woman who went missing, The Japan Times reported. Police were investigating the woman’s disappearance when they came upon what appears to be her missing head, still inside a suitcase in an Osaka lodging facility, they said.

  • Democrats distance themselves from Nancy Pelosi
    Politics
    Fox Business Videos

    Democrats distance themselves from Nancy Pelosi

    Former President George W. Bush Deputy Assistant Brad Blakeman discusses why Democrats are starting to disengage from Senate Minority Leader Nancy Pelosi.

  • Latest Mueller indictment spells trouble for bankers, too
    Finance
    Associated Press

    Latest Mueller indictment spells trouble for bankers, too

    Recently filed federal charges against President Donald Trump's ex-campaign chairman Paul Manafort could also pose legal and regulatory risks for the banks that loaned him millions of dollars against his New York real estate in recent years. The most serious exposure may be for a Rhode Island-based bank that employed a "conspirator" in Manafort's scheme to obtain a loan he couldn't afford, according to the 32-count new indictment unsealed this week. Dubbed "Lender B" in court papers, Citizens Bank not only lent Manafort $3.4 million based off of fraudulent documents but, in another case, appeared to help Manafort avoid being caught by sending back a crudely falsified financial statement that had been sent to them from a Manafort associate, according to federal prosecutors.

  • 3 Reasons Traditional IRAs Are Better Than Roth IRAs
    Business
    Motley Fool

    3 Reasons Traditional IRAs Are Better Than Roth IRAs

    Saving for retirement is important, and someone making the most of the savings they're able to set aside will make a huge difference in how comfortable their retirement is. The federal government offers many tax-favored retirement savings vehicles, and one of the most popular is the IRA. One question millions of people face every year is whether to use a traditional or Roth IRA.

  • Why Energy Stocks Sank in Trump's First Year in Office
    Business
    Motley Fool

    Why Energy Stocks Sank in Trump's First Year in Office

    From election day to inauguration day, energy stocks were on fire, with the average one in the S&P 500 rallying more than 7% on the hope that the pro-energy Trump Administration would eliminate some of the regulatory burdens that had been holding the industry back. Many factors played a role in driving energy stocks lower since Inauguration Day, most unrelated to presidential policy changes.

  • Here's How Much Bitcoin Elon Musk Owns
    Business
    Fortune

    Here's How Much Bitcoin Elon Musk Owns

    Musk revealed this week on Twitter how much Bitcoin he owns—and it’s not much. Musk shed light on his bitcoin ownership in response to a question from a Twitter follower asking why there were so many bots impersonating him to push cryptocurrency scams. “What’s with all the ETH spam?” the Twitter user asked, referring to the cryptocurrency Ethereum.

  • Why Nvidia (NVDA) Stock Is the Cheapest It's Been in Nearly a Year
    Finance
    Zacks

    Why Nvidia (NVDA) Stock Is the Cheapest It's Been in Nearly a Year

    It is no secret that Nvidia NVDA is one of Wall Street’s most popular stocks. The graphics chip maker is a dominant force in the global gaming industry, and its tireless investments in self-driving cars, machine learning, and artificial intelligence all but guarantee the company a spot among the tech industry’s leaders for years to come. Nvidia’s leadership and innovation have also led to a massive surge in the company’s stock.

  • This Growth Stock Looks Like an Incredible Bargain After Getting Pummeled This Week
    Business
    Motley Fool

    This Growth Stock Looks Like an Incredible Bargain After Getting Pummeled This Week

    This week was a rough one for U.S. oil and gas giant Devon Energy (NYSE: DVN). Devon Energy's stock might be down now, but the recovery looks to be just ahead. Two related factors drove Devon Energy's sell-off this week.

  • Best Dividend Stocks This Month
    Business
    Simply Wall St.

    Best Dividend Stocks This Month

    Valero Energy is one of the top dividend stocks I think are worth considering today. A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. If you’re a long term investor, these high-performing top dividend stocks can boost your monthly portfolio income.

  • Trump Said to Weigh 'Red Flag' Orders to Take Guns Away Quickly
    Politics
    Time

    Trump Said to Weigh 'Red Flag' Orders to Take Guns Away Quickly

    The White House is considering the idea of using restraining orders to take firearms away from people considered dangerous as part of its response to last week’s massacre at a Florida high school, two people familiar with the matter said. Under extreme risk protection orders, which are also known as red flag laws or gun violence restraining orders, firearms can be confiscated from people found to be at risk. The White House is studying an Indiana version of the law, and is considering other measures as well, according to the people, who requested anonymity to discuss policy deliberations.

  • These 3 Dividend Stocks Offer Shares at a Discount
    Business
    Motley Fool

    These 3 Dividend Stocks Offer Shares at a Discount

    Dividend stocks can help investors benefit from the power of compounding. By reinvesting dividend payments to purchase additional shares of stock, you'll see the amount of income you receive grow over time, building on itself and creating a positive-feedback loop that can eventually produce huge amounts of income. In particular, Aqua America (NYSE: WTR), Franco-Nevada (NYSE: FNV), and Student Transportation (NASDAQ: STB) are three stocks that you can buy more cheaply through dividend reinvestment than you'll get on the open market.

  • Adam Schiff's Memo Has Been Released. Here's What It Says
    Politics
    Time

    Adam Schiff's Memo Has Been Released. Here's What It Says

    Democrats on the the House Intelligence Committee on Saturday released a memo prepared as a counter to the one overseen by the committee’s chairman Devin Nunes that was publicized earlier this month. Overseen by Rep. Adam Schiff, the ranking Democrat on the committee, the memo from the Democrats attempts to contextualize the Nunes memo, which argued that the FBI displayed bias in obtaining a FISA warrant for former Trump campaign adviser Carter Page. That memo alleges that the FBI failed to disclose Christopher Steele, who compiled the notorious Steele dossier, was working for Fusion GPS or the firm’s founder Glenn Simpson, and that Deputy FBI Director Andrew McCabe — who is stepping down —said the FBI would not have sought a warrant without the dossier.

  • US asks judge to approve seizure of Pharma Bro's assets
    Finance
    Associated Press

    US asks judge to approve seizure of Pharma Bro's assets

    NEW YORK (AP) — "Pharma Bro" Martin Shkreli appeared in court Friday for the first time since a judge locked him up for his online antics, and the brash former pharmaceutical CEO had a new look since his bail was revoked in September: a scruffy beard that made his appearance less boyish. "Under the circumstances, I think he's doing remarkably well," his attorney, Ben Brafman, told reporters when asked about his client's stint in a fortress-like federal jail in Brooklyn. U.S. District Judge Kiyo Matsumoto didn't immediately rule on the government's demand that Shkreli should have to forfeit $7.3 million in assets, including a one-of-a-kind Wu-Tang Clan "Once Upon a Time in Shaolin" album that he has boasted he bought for $2 million.