Report from China: real estate projects dominate China’s EB-5 marketplace

Large real estate projects are capturing the attention of EB-5 investors this summer throughout the Chinese marketplace. Hotel and mixed use development projects have been dominating the marketplace over the past few summer months.  From large projects such as The Fairmont Austin Hotel, to smaller Hilton and Marriott branded hotels in Dallas and Salt Lake City as well as other cities, there is great success in EB-5 funding for hotels.  Mixed use developments with offices, retail and apartments are also seeing great response from investors. Reasons for success of these real estate projects are due to Chinese investors’ familiarity with real estate, so it takes less time to educate them about the project.  They also understand the large job creation full service hotels and mixed use developments will produce, giving them comfort that their permanent green card will be granted when the time comes.  Even health care and senior care facilities are seeing a tremendous success in the marketplace because of the real estate involved and labor intensive services.

Industrial and non-real estate projects (such as alternative energy) still are facing the challenges as they have to convince the investors that these projects are as attractive as real estate projects. These projects face the questions of whether it is a secured and safe project that will be able to create the jobs and revenue needed to pay back the investors. Since investors are not as familiar with these industry sectors, they will spend more time to do their due diligence and also raise more questions.  Direct EB-5 projects continue to gain ground and interest from investors. 

To learn more about marketing EB-5 projects, join us at our exclusive Accelerated EB-5 Capital Raising Workshop on July 25.