China Vanke dives into US market with major deal
Chinese developer joins rush of property firms expanding offshore by taking major stake in upmarket residential complex in San Francisco
China Vanke, the largest listed developer on the mainland, is jumping on the overseas expansion bandwagon by acquiring a majority stake in a high-end residential project in San Francisco.
The deal was unveiled by chairman Wang Shi on his microblog last week.
Vanke bought 70 per cent of the upmarket project at 201 Folsom Street from Tishman Speyer Properties, according to Credit Suisse analyst Du Jinsong.
The development will consist of 669 residential units, according to Credit Suisse.
The move came after Vanke teamed up with New World Development last month to win a residential site in Tsuen Wan for HK$3.43 billon.
If we believe in the economic cycle, now could be a good time for Chinese developers to do pilot projects in untapped international waters
"Although China is an immense market which could accommodate further growth, it will inevitably become more competitive going forward. Expansion into overseas markets is a natural solution to this," Mizuho Securities Asia analyst Alan Jin said.