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Chinese investment in U.S. commercial real estate plunges 76%

Westin St. Francis hotel
The Westin St. Francis in San Francisco was in the portfolio of U.S. luxury hotels that China’s Anbang Insurance Group agreed in September to sell to South Korea’s Mirae Asset Management.
(Christopher Reynolds / Los Angeles Times)

Chinese investment in U.S. commercial property is plunging as restrictions on capital leaving China and geopolitical tensions weigh on real estate deals.

Chinese investors put $1.4 billion into U.S. commercial real estate in the 12 months through September, a 76% plunge from a year earlier, according to a report from Real Capital Analytics. Investment from Hong Kong was also down in the period.

“Chinese investors have become net sellers as authorities in China have restricted speculative outbound investment,” Jim Costello, senior vice president at Real Capital Analytics, wrote in the report.

In the 12 months through September, foreign investors were net sellers of U.S. commercial real estate, according to Real Capital Analytics. That’s after six consecutive years of gains in cross-border acquisitions.

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Although Chinese investors are avoiding U.S. deals, there was an uptick in capital from countries including Germany, Turkey and South Korea.

In September, China’s Anbang Insurance Group Co. agreed to sell a portfolio of U.S. luxury hotels to South Korea’s Mirae Asset Management Co. for $5.8 billion.


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