CIC's Refinancing of NYC Tower Illustrates Growing Magnitude of Chinese Players
Bloomberg reports: It was recently announced that China’s largest sovereign wealth fund, China Investment Corporation (CIC), has partnered with AREA Real Estate Finance Corp to provide the Carlyle Group with a refinancing loan on its office property at 650 Madison Avenue in Manhattan. Carlyle had originally used a first mortgage loan from state-controlled Industrial & Commercial Bank of China to purchase the well-tenanted trophy.
Together with a host of other deals involving cross-border players from China, the Carlyle deal illustrates that country’s growing presence on the global commercial property stage. This ramp-up in activity is reflected in data aggregated by Real Capital Analytics (RCA), which identified China purchasing more than $125 million in US commercial properties during 2010. This is up from $18 million in 2009. And as RCA senior analyst Ben Carlos Thypin acknowledged to Bloomberg, those numbers do not capture “purchases through property funds, a route that Chinese buyers prefer.”
Funds such as CIC and China’s state-controlled banks have invested heavily into equity over the past three years, taking stakes in General Growth Properties, Morgan Stanley’s global real estate funds, and partial interest equity deals in various markets. Other Bloomberg interviewees echoed Mr Thypin’s statements, and many held a bullish outlook for Chinese real estate buyers, lenders, and investors acting in the US.
View the full article on Bloomberg: CIC's Refinancing of NYC Tower Illustrates Growing Magnitude of Chinese Players
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Posted by: Nina Turner