RCA in the News

Chinese Insurance Cross-Border Capital Hits Boston

Wall Street Journal / April 14th, 2015

Wall Street Journal reports: The recent trend of large property purchases by Chinese companies continues, but this time not in New York. Ping An Insurance and China Life co-purchased a majority stake along with Tishman Speyer for a Seaport District project on Pier 4 in Boston. The exact size of each stake was not disclosed. Included in the development are a 100-unit, 9-story condo, a 13-story office tower and a waterfront park.

The cross-border flows of Chinese capital for US properties totals $2.5 billion so far in 2015, according global commercial real estate data and analytics firm Real Capital Analytics (RCA). Though 2014 showed a slight dip from 2013 ($13.6 billion and $15.3 billion respectively), it shot up considerably from 2012’s $5.4 billion total.

Tishman Speyer has a sizable development pipeline in China, while also developing a 655-unit San Francisco condo project with China Vanke. With the threshold of foreign properties lifted from 15 to 30 percent for all Chinese insurer’s real estate assets, their buying power and available capital will continue to manifest in mature CBD office and other prime commercial properties abroad.