Chinese investment into real estate in Gateway markets has dropped off dramatically over the past two years. It is too early to see how the trade disputes have changed the focus of their investments since they have been so curtailed and so many other issues at play. CHAMBERS AND PARTNERS USA AWARD FOR EXCELLENCE IN REAL ESTATE (TEAM) 2017, 2013, and 2010
What asset classes are Chinese funds focusing on right now?
With the trade dispute between China and the U.S., as a U.S. company that is looking for Chinese funds, we would not be surprised if there has been some shift of interest among Chinese funds. What asset class are the Chinese funds focusing on right now?
Chinese investors always are seeking real estate in the U.S. However, we have seen diversity in terms of investments other than real estate in Europe, South America and Australia. Investment focus for these regions are mostly social investments, agriculture (beef and poultry, etc.).
The only answer I can give you is that Chinese investment is much less visible, so its hard to judge. The Chinese banks I work with are starting to build relationships with domestic companies.
Although we hear from many Chinese funds/investors concerned about investing in the U.S., we have not seen any changes on these funds or investors' strategies. For the past two years, we have seen Chinese funds aggressively looking for opportunities in both senior housing and student housing development/operation. The Chinese government is aware of the growing population in Chinese baby boomers, but due to the limited knowledge and experience on the operational side of senior housing in China, the Chinese government encourages funds to acquire these type of assets to learn the business, and eventually bring this knowledge and experience back to China. However, we have not seem much of the impact immediately on the real estate side for Chinese investors from the trade dispute, but things could change over time.