China's leading property development firm, China Vanke, made its debut in the U.S. property market recently in partnership with American real estate company, Tishman Speyer. The U.S. company now hopes to rope in more joint ventures with Vanke.
Tishman Speyer co-chief executive and president, Rob Speyer, said that the company was excited about its first venture with Vanke and hoped that the deal will lead to many other projects over the next few years, reports Businessweek.
"We are very excited for this first project, and I would hope it will lead to other projects with Vanke over time. Real estate is not immune to globalization, and there are opportunities for all of us to benefit from the industry whether it'd be in China or U.S." Speyer said in a telephone interview with Bloomberg.
Speyer also revealed that the San Francisco residential complex project was a result of "getting to know" Vanke in the past two years. With the project in hand and Vanke's interest in expanding into foreign markets, the deal was a "natural fit", reports Wall Street and Main.
Tishman Speyer is one of the leading real estate firms in America. It has various residential and commercial projects all over the world including a total of 14,293,419 projects in China alone.
Some of its famous projects in America include, the Rockefeller Center, the Chrysler Center and the MetLife building all located in New York. Apart from the Vanke deal, it has also signed a deal with the French government to build 575,000 square feet of office space in Paris.
As the Chinese real estate markets are close to saturation point, the government has imposed various restraining measures to reduce the speculations prevailing in the real estate markets. Recently, the government declared a cap on new property purchases in China. Shares of real estate investors also fell to the lowest in the past three weeks on Thursday, Feb 21, 2013.
This has led major property developers to look for opportunities abroad. As the real estate market in U.S. improves, foreigners are finding the U.S. market to be a safe investment prospect.
