Developers fear market turmoil in China could turn off cash spigot to NYC
Chinese investors only really started piling into New York’s commercial real estate market two years ago, and The Real Deal proclaimed 2015 the “year of the Chinese investor.” But now, a growing number of developers argue the party may already be over.
“We should be looking for other sources of capital over the next few years,” Jeff Blau, CEO of the Related Companies, said at a 2016 real estate outlook conference hosted by ULI New York Wednesday morning.
Over the past months, stock market turmoil, exchange rate volatility and a slew of bad economic data have raised questions over the health of the Chinese economy. For New York’s real estate industry, this has also stirred fears of fewer Chinese investors lining up to spend.
Blau, whose firm has raised hundreds of millions of dollars for its Hudson Yards project from Chinese EB-5 investors, said many of the Chinese institutional investors are still bullish on the country’s economy. But he also said that Chinese investment abroad could nonetheless take a hit.
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