China Vanke Co (萬科), the biggest developer listed on Chinese exchanges, has entered a property venture in San Francisco, its first foray into the US real-estate market.
The company signed the deal on Feb. 12. Vanke chairman Wang Shi (王石) wrote on his microblog on Sina Corp’s (新浪) Twitter-like Weibo service, and confirmed by Vanke, without giving any details.
Vanke bought 70 percent of 201 Folsom Street, a mainly high-end residential project owned by Tishman Speyer Properties LP, Jinsong Du (杜勁松), a Hong Kong-based property analyst at Credit Suisse Group AG, wrote in a note to clients on Feb. 12, citing information from Vanke.
The development will comprise about 669 residential units, Credit Suisse said.
Neither of the two developers has made announcements on the project.
Chinese developers are starting to venture overseas, chasing wealthy locals who are buying apartments as the government restrains the market at home.
Xinyuan Real Estate Co (鑫苑) in September last year took control of a lot slated for more than 200 units of housing near New York’s Brooklyn waterfront for US$54.2 million, a deal the Beijing-based company said was the first of its kind by a Chinese firm in the US.
The San Francisco deal is Vanke’s first outside Asia and comes after the company’s Hong Kong unit jointly won a HK$3.43 billion (US$442 million) bid for a site in the city, marking its entry into a new market.
The San Francisco project will target mainland Chinese buyers, according to Credit Suisse, which cited Vanke management.
The developer, based in Shenzhen, set up international units to expand overseas after it acquired a Hong Kong developer in May last year.
“Good enterprises in the 21st century must have global and international vision,” Wang wrote in the microblog, commenting on the deal.
Vanke’s investment is pending approval from the Chinese government.