Developer Greenland Group, owned by China will take majority ownership of the Atlantic Yards in New York. The deal is expected to be the largest ever investment by a China based company in a property in the U.S.
The Greenland Group will have 70% ownership of the joint venture that was established with the Forest City Ratner Companies. The joint venture is to develop a massive residential and commercial project in Brooklyn.
Over the past year, property companies from China have starting entering the real estate world in the U.S. looking to enter new markets and diversify their business after keeping their focus in China for the last 20 years.
The move also puts Greenland at the heart one of the biggest urban renewals in New York City in decades. It is one that has had problems getting started due to a financial crisis that hit the entire globe.
The agreement between Forest City Ratner and Greenland is a memorandum of understanding. One advisor involved in the negotiations said both companies were hoping to complete the formal joint venture before June of 2014.
Greenland announced it would be targeting the new projects at investors from China as well as immigrants and the New York white-collar community.
The deal with Atlantic Yards highlights how Greenland has become the most ambitious property company in China internationally.
In May, the developer, based in Shanghai, completed a listing on the stock exchange in Hong Kong through its acquisition of a company that was listed but smaller. A moved making it easier to raise money for its push overseas.
