The Bank of China's (BOC) new real estate purchase is indicative of a spike in the number of overseas properties secured by Chinese companies interested in expanding into new areas. The accumulation of assets appears to be at the forefront of such activity.
Manhattan, New York's 7 Bryant Park, which is still being built, is the seventh international iconic building to come under Chinese ownership.
Landmark properties have become increasingly popular among Chinese buyers, with the following buildings already in the portfolios of the nation's businesses:
- General Motors building in New York City
- One Chase Manhattan Plaza, New York City
- Waldorf Astoria Hotel, New York City
- 10 Upper Bank Street, London
- Lloyds of London building, London
- Edificio Espana, Madrid
The former headquarters of the Chase Manhattan Bank was purchased by Fosun International Ltd. for $725 million, while the Waldorf Astoria Hotel was sold for $1.95 billion.
Regulation changes have played a key role, as the Ping An Insurance (Group) Co. of China Ltd. bought the Lloyds of London property for $387 million after the government eased restrictions for Chinese companies seeking to make overseas real estate acquisitions.
What the BOC intends to do with the 28-story building and its 43,700 square feet of floor space once construction is finished is not yet clear.
Construction is being handled by Texan firm Hines together with a JP Morgan Chase & Co. entity. The scheduled completion time is slated for 2015.
People close to the negotiations informed the media that the deal was finalized on Friday, Dec. 5.