16 September 2019

Chinese investors snap up distressed US buildings, WSJ says

Chinese investors are snapping up distressed office buildings, hotels and other overleveraged commercial properties in the United States, the Wall Street Journal reported on Monday. The deals are a sign that some Chinese investors are willing to take more risk than most seasoned foreign real-estate companies and even many US investors, the newspaper said, adding that they may hold the real estate for years until values rebound. In the most recent deal, Dongdu International earlier this month paid US$13.6 million for two of Detroit’s better-known buildings, including the former home of the Detroit Free Press. The Chinese company plans to convert the empty Free Press building into apartments and keep the David Stott building, which is less than 25 percent occupied, for lease as offices, the report said.

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