Chinese Real Estate Investors Look to Waldorf-Astoria for Investment Hope
The U.S. real estate market is at the center of another brewing crisis but unlike its usual role of playing bully in world economics, this time it is seen as a source of hope for Chinese investors looking for a stable place to dump their wealth on.
According to The Street, China's investors are seeking refuge in U.S. real estate especially insurance companies that stand to make premiums of up to $3.32 trillion by the year 2020. Apparently, these firms are looking for solid returns after China's stock markets suffered a recent setback and their currency taking a hit. In August, China devalued its own money to try to soften the blow of the 8 percent drop on the Shanghai Stock Exchange.
The Chinese wealthy along with their country's various money institutions are aiming for stable and reliable investments notably in commercial and income-generating residential projects as compared to luxurious properties that are considered for personal use. This is according to Edward Mermelstein who is a 20-year-old veteran of consulting for clients in realty business. This game plan is akin to playing "Monopoly" where players pay to acquire money-making real estate like hotels and houses. "There's an argument that this is a flight to safety," Mermelstein said. "This is very much a flight to safety," He emphasized.
This move is consistent with investments poured into Europe and the U.S. by Chinese investors with one significant purchase in the last couple of years that is becoming a beacon of hope for many of them -- the acquisition of the Waldorf Astoria Hotel in New York by insurance company Anbang for $1.95 billion.
Meanwhile, on The Guardian, President Barack Obama will reportedly not stay at the Waldorf Astoria for the UN General assembly in October. The White House however refused to confirm if the reason for skipping the traditional hotel of many U.S. presidents is fears of espionage by the now Chinese-owned hotel.