China’s biggest property developer has made its first foray into the US with a deal for a high-end residential complex in San Francisco.
China Vanke, the leading Chinese developer by sales, will invest in a project launched by Tishman Speyer Properties.
The size of the investment was not disclosed but it was small enough that Vanke announced it on its chairman’s microblog rather than via a stock exchange filing.
But the significance of the deal is potentially greater as one of the first steps by a big Chinese developer to build homes in the US. With Beijing placing caps on home purchases in big cities and many smaller cities suffering from overbuilding, Chinese developers are scouring further afield for opportunities.
“There is no point telling Chinese companies to mind their own domestic business. A good enterprise in the 21st century must be armed with a global vision.” Wang Shi, Vanke chairman, wrote on Weibo, a Chinese microblog site.
Mr Wang had previously said that Vanke, which has a market value of nearly Rmb130bn ($21bn), wanted to enter foreign countries, especially those with large communities of Chinese who are familiar with its reputation.
Vanke’s entry into the US follows that of Xinyuan Real Estate, which paid $54m last year for a plot in New York that is zoned for 200 housing units.
China Development Bank, a government-controlled lender, also entered the US housing market last year when it provided a $1.7bn loan to Lennar Corp, one of the biggest homebuilders in the US, for two developments in San Francisco.
Vanke will take a 70 per cent stake in the San Francisco project, which is known as 201 Folsom Street, with Tishman Speyer retaining the rest, according to Du Jinsong, a Credit Suisse analyst.
Vanke still requires Chinese government approval to move its money abroad for the deal.
“It is still too early to gauge the ultimate impact of Vanke’s international expansion,” Mr Du said. “Nevertheless, given the structural issues of China’s property sector, we view this as a useful experiment by Vanke to find potential long-term growth drivers.”
Vanke also announced plans last month to shift part of its stock listing from mainland China to Hong Kong.
Along with bringing it a higher valuation, the move will make it easier for Vanke to raise financing for foreign acquisitions.
1.Word of the day
stake：the part of a business that you own because you have invested money in it; the degree to which you are involved in something and want it to succeed 股权，股份
ex: How much is Yahoo's stake in Alibaba Group worth?
2.Phrase of the day
market value：the total value of all the shares on a stock market, or the value of a particular company's shares 市值
ex: Shares in Nokia were up 1 per cent on Wednesday, giving it a market value of US$33.4bn.
3.Sentence of the day
A good enterprise in the 21st century must be armed with a global vision.
ex: But, armed with a few key phrases and a little local knowledge, Korea can be a vegetarians' paradise.
扩展一下：be armed to the teeth，意思是全副武装。1849年，armed to the teeth第一次出现。英国实业家和政治家理查德·科布登在演讲中谈到英国的国防预算问题时说"Is there any reason why we should be armed to the teeth?"，从此，armed to the teeth就被广泛使用。
ex:Hitler was armed to the teeth when he launched the Second World War, but in a few years, he was completely defeated.
4.Cultural point of the day
deal：an informal arrangement that you have with someone that gives you advantages or disadvantages交易、买卖
5.Translation of the day
小编注：这句话很长而且没有标点符号，第一遍看的时候大多数人会摸不着头脑。任何翻译的关键在于弄清句子结构，而这个句子的核心是“that”和“rather than”。“that”在这里翻译的比较灵活，可以作为“原因”翻译也可以作为事情的结果，“rather than”一般译成“而不是”，翻译时紧跟着前半句就可以。