February 13, 2017
Chinese institutional investors invested close to $17 billion in U.S. commercial real estate deals in 2016, according to research firm Rhodium Group. However, analysts and lawyers think it’s unlikely those figures will be repeated in 2017. While China’s investors still like America’s commercial real estate, President Donald Trump’s administration is embarking on its “America First” policy reforms.
One of the aspects of the program will involve more regulatory scrutiny from the Committee on Foreign Investment in the United States. CFIUS will be focusing on the real estate sector, with China under additional scrutiny, due to its “complicated political relationship between the two countries,” according to PERE News.
Any regulations from the United States would occur on top of overseas spending curbs from the Beijing government. “Chinese investors already typically take comparatively longer to approve transactions than their American counterparts, and additional curbs by American regulators are, for some, a bridge too far,” PERE noted.
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