Bringing the cash back home


Chinese net purchases of U.S. commercial real estate last year dwindled to their lowest level since 2012, as Beijing kept up the pressure on Chinese investors to bring cash home during a period of worsening economic growth.

Insurers, conglomerates and other investors from mainland China were net sellers of $854 million of U.S. commercial property in the fourth quarter, according to Real Capital Analytics. That marked the third-straight quarter Chinese investors sold more U.S. property than they bought, the first time ever these investors have been sellers for that long a stretch.

The selling during most of 2018 marked a powerful reversal from the previous five years, when Chinese investors went on a massive buying spree, often handily outbidding other investors for U.S. trophy properties. They spent tens of billions dollars on luxury hotels like the landmark Waldorf Astoria in New York, a nearly $1 billion skyscraper development in Chicago, and a glitzy residential project in Beverly Hills, Calif.

Chinese were net buyers of $2.63 billion of U.S. real estate in 2018, the lowest total in six years, according to Real Capital. China would have been a big net seller for the entire year if not for a $11.6 billion purchase of GLP, formerly Global Logistic Properties Ltd, made by a consortium of Chinese buyers a year ago.

GLP is kind of an odd company.

Bonus: this fellow is very smart but we think he got this one wrong. We’ll know in a couple of weeks.

2 Responses to “Bringing the cash back home”

  1. feeblemind Says:

    re GLP

    I did visit their site. Perhaps all corporate pages are like this nowadays, but this one used a lot of catch words and fancy phrases to tell me . . . practically nothing.

    I agree with Codevilla, but readily concede that my crystal ball is no better than anyone else’s.

    OTOH Sean Hannity says he is, “99.99% certain that when the 3 weeks are up, Trump will declare a ‘state of emergency’ and build the wall.”

    My only problem with that is that it will be surely be challenged in court and a judge will nix that plan.

    It could then be tied up in the courts until he leaves office.

    But then I am just a feeble minded peasant with only a view from the peanut gallery. What do I know?

  2. feeblemind Says:

    China’s Slowdown Is Starting to Hit Where It Hurts: Employment

    “Judging from the recent developments, the risk of unemployment in China is increasing and the unemployment rate is approaching a dangerous level. Domestic economic policies are in urgent need of adjustment and it is also suggested that the government should introduce a largescale stimulus policy to deal with domestic unemployment.”

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