China’s real estate developers have left home for Australia, Europe and the US, but that doesn’t mean that they’ve left their funding partners behind.
Chinese financial institutions are taking a growing slice of the real estate lending market in the US, and much of their business comes from developers such as Dalian Wanda which are taking on billions of dollars in new projects globally.
Ping An Bank, the bank financing division of a top five Chinese insurer, has extended a $700 million loan to the developers of Chicago’s Vista Tower, said to be the biggest construction loan in the city’s history, according to US media reports. The financing, secured nearly eight months after the project officially broke ground, will allow partners Magellan Development Group and Dalian Wanda Group to complete the billion-dollar, mixed-use luxury skyscraper by 2020.
One of the biggest Chinese-invested real estate projects in the US, the 93-storey Vista Tower will be Chicago’s third-tallest building upon completion. The loan is the latest example of China’s deep-pocketed banks backing development projects in the US as mainland investment in the country’s property markets continues to grow.
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