According to the Wall Street Journal:
"State-owned property developer Greenland Holdings Group of China agreed to buy a majority stake in a 15-tower apartment project in Brooklyn, N.Y., that would rank as the largest commercial-real-estate development in the U.S. ever to get major backing directly from a Chinese company.
Located in the Atlantic Yards site that includes the Barclays Center arena, the project is expected to cost nearly $4 billion, including debt. The deal could be announced as soon as Friday.
Terms of the tentative deal call for Greenland to buy a 70% stake from Forest City Ratner Cos., which began the project and would continue to manage the development. The purchase price isn't being disclosed, but Forest City has invested $500 million in the 22-acre project so far—and it has committed to additional spending on land and infrastructure set to total hundreds of millions of dollars".
"In addition to the apartment towers, the project includes one office building and retail space. If the deal is approved, Shanghai-based Greenland would provide 70% of the money needed to finish the project, excluding any debt that is taken on for the construction.
The planned investment would be the latest high-profile investment in U.S. real estate by a Chinese Company. Chinese investment in U.S. properties has reached $1.7 billion in 2013, including the recent purchase by billionaire Zhang Xin of a stake in the General Motors building in Manhattan. That is up from $1.1 billion in all of 2011 and just $22 million in 2008, according to property-data firm Real Capital Analytics Inc.
Chinese companies also are becoming developers in major construction projects throughout the country.China Vanke Corp.the largest Chinese developer, is co-developing two condominium towers in San Francisco with Tishman Speyer Properties. Greenland in July announced its first U.S. investment: a $1 billion hotel and apartment project in downtown Los Angeles".
"Beijing has encouraged Chinese companies to go abroad to help diversify the country's foreign-exchange reserves. Developers also view investing in the U.S. as a way of diversifying their portfolios, particularly at a time when concerns are rising of a slowing Chinese economy".
