China Vanke, China's largest property developer, is teaming up with RFR Holdings LLC, an affluent American real estate firm, to build a residential tower in Manhattan, according to several news reports.
Vanke, RFR Holdings and Hines are partnering up to build a 61-story luxury condo at 610 Lexington Avenue, according to The Wall Street Journal.
The builder consortium hopes to finish construction by 2015 and start selling units by fall of that year before handing them out by 2017.
Financial terms of the project were not revealed.
"It truly reflects Vanke's globalization objective of forging strategic partnerships with world-class developers and learning through close collaboration. The Lexington Avenue project will undoubtedly transform the New York City skyline and redefine modern urban living," Yu Liang, president of Vanke, said in a statement.
Although this is Vanke's first project in the Big Apple, it is their second in the United States. At about the same time last year, Vanke announced its first U.S. deal - a partnership with Tishman Speyer to build a residential complex in San Francisco.
"We are entering the U.S. market to continue this learning process, to understand business models in a mature market and accumulate management experience through project cooperation." Wang Shi, Chairman of Vanke, said in a statement at the time.
Chinese investment in the American real estate sector has been gaining momentum for a while now. A report by the National Association of Realtors revealed that China spent about $8.2 billion in 2012 on American real estate, generating about $492 million in commissions for real estate agents in the country.
In 2013, the country's investment doubled to $14 billion, reports Businessweek.
Prices for condos and co-ops in Manhattan have gone up 60.5 percent and 57 percent respectively over the last decade. The year 2013 recorded the second highest number of sales in the last 25 years behind 2007, according to a Douglas Elliman decade report.
