Chinese-Owned 3rd Ave Property in NY Faces Crack Down by Trump Admin

Chinese companies like HNA Group and Greenland Holding Group are unloading prize properties to repay debt and to comply with regulatory and market pressures from home, analysts said.

The Trump administration has carried strong rhetoric against China and has taken action against the country in a number of ways like through tariffs. Now it is trying to set its sights on some American investments that Chinese companies make, and one example is local as HNA and its partner in America want a majority stake for the property at 850 Third Ave., according to The New York Post.

Congress recently gave the administration more leeway to do something about China following Congress allowing the Committee on Foreign Investors in the United to grow. It appears to be the first time since then that the administration has tried to do something related to the CFIUS authority because the new limits on those powers allow for decisions to be made about foreign real estate developments and interests, according to The New York Post.

“This is coming from the White House,” according to a source who explained how the company could be forced to sell the whole property amidst a growing trade war between the two countries.

There has to be some specific national security concern cited in order for such a seizure to take place, according to sources.

HNA does have some options, even though it is struggling with debt problems. Sources said that the company will also have some time to figure things out because a court battle over the seizure would potentially take a few years to resolve.

The Jewish Voice has been reporting on U.S.-Chinese relations, recently about the turn in the real estate activity of the Chinese in America. Chinese insurers, conglomerates, and other investors have turned net sellers of U.S. commercial real estate for the first time in 10 years, according to The Wall Street Journal. They have spent tens of billions of dollars to acquire a wide array of large properties.

Things appeared to be taking a turn after a second quarter in which Chinese investors sold $1.29 billion worth of U.S. commercial real estate while purchasing only $126.2 million of property, according to data firm Real Capital Analytics. The occasion was the first time that these investors were net sellers for a quarter since 2008, according to The Wall Street Journal.

The more than $1 billion in net sales reflects how much the Chinese government’s attitude toward investing overseas has changed in recent months.

Chinese investors started buying up real estate years ago when Beijing officials loosened restrictions on foreign investment. They quickly owned notable properties in places like Los Angeles, San Francisco, and Chicago with high-profile acquisitions, including the $1.95 billion purchase of the Waldorf Astoria, the highest price ever paid for a U.S. hotel, according to The Wall Street Journal.

Chinese companies like HNA Group and Greenland Holding Group are unloading prize properties to repay debt and to comply with regulatory and market pressures from home, analysts said.

By: Timothy McKenna

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