To read this full article you need to be subscribed to Institutional Real Estate Americas
Taking flight: Despite capital controls, Chinese investors are actively buying overseas real estate
Massive Chinese investments in international real estate have become commonplace in the past four years, but new analysis shows the trend is for even larger deals. Rather than bucking this trend, Beijing’s capital controls may even enhance the move toward bigger investments.
Chinese investment companies are gaining experience and building stronger relationships with the top overseas real estate partners. As U.S. fund managers notice the Chinese mean business, and mean it on a large scale, they present more of their most sensitive and high-dollar offmarket opportunities to Chinese buyers.
Likewise, if Chinese investors are going to go halfway across the world to do business, the deals have to be big enough to count. Some of these institutions have massive balance sheets and are worried about yuan depreciation, so they want to invest large amounts in overseas assets.
Top Chinese investment houses nowadays are less interested in discussing one-off investment oppo