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Vietnam gains on China as one of the biggest participants in U.S. foreign-investment program
By
Konrad Putzier
March 5, 2019 9:00 a.m. ET
As Chinese investors sour on a program that offers American residency in exchange for certain real-estate investments, U.S. developers are turning to a new, fast-growing source of cheap capital: Vietnam.
The Southeast Asian country is rapidly gaining on China as one of the biggest participants in the foreign-investment initiative known as EB-5. The program offers green cards in return for investing in job-creating U.S. businesses or real-estate projects.
About 20% of the current EB-5 investment in U.S. real estate comes from Vietnam, trailing only the 25% from India and 30% from China, according to estimates by Nicholas Mastroianni II, chief executive officer of the EB-5 regional center U.S. Immigration Fund. These centers pool money from investors and invest it in real-estate projects.
The number of EB-5 visas issued to Vietnamese nationals increased to 693 last fiscal year, up from 471 in 2017. Only four years ago, Vietnamese accounted for barely 1% of all EB-5 visas issued, a total of 121, according to the State Department.
Long Island Rail Road commuter cars parked at the West Side rail yard, part of the Hudson Yards development site, in New York City. PHOTO: EMIL LENDOF/THE WALL STREET JOURNAL
A number of prominent New York City developers are advertising their projects to Vietnamese investors through local agencies. That includes the third phase of Related Companies’ massive Hudson Yards development, which is seeking $380 million from EB-5 investors, and Extell Development’s Hard Rock Hotel project in Times Square.
Because the program’s main draw is a green card, these foreign investors are often willing to accept lower returns, making it a cheaper source of financing.
The surge in Vietnamese participation couldn’t come at a better time for U.S. developers, which have bemoaned the decline of cheap funding as Chinese investors pull back.
https://www.wsj.com/articles/real-estate-developers-look-to-vietnam-for-cheap-financing-11551794400
By
Konrad Putzier
March 5, 2019 9:00 a.m. ET
As Chinese investors sour on a program that offers American residency in exchange for certain real-estate investments, U.S. developers are turning to a new, fast-growing source of cheap capital: Vietnam.
The Southeast Asian country is rapidly gaining on China as one of the biggest participants in the foreign-investment initiative known as EB-5. The program offers green cards in return for investing in job-creating U.S. businesses or real-estate projects.
About 20% of the current EB-5 investment in U.S. real estate comes from Vietnam, trailing only the 25% from India and 30% from China, according to estimates by Nicholas Mastroianni II, chief executive officer of the EB-5 regional center U.S. Immigration Fund. These centers pool money from investors and invest it in real-estate projects.
The number of EB-5 visas issued to Vietnamese nationals increased to 693 last fiscal year, up from 471 in 2017. Only four years ago, Vietnamese accounted for barely 1% of all EB-5 visas issued, a total of 121, according to the State Department.
Long Island Rail Road commuter cars parked at the West Side rail yard, part of the Hudson Yards development site, in New York City. PHOTO: EMIL LENDOF/THE WALL STREET JOURNAL
A number of prominent New York City developers are advertising their projects to Vietnamese investors through local agencies. That includes the third phase of Related Companies’ massive Hudson Yards development, which is seeking $380 million from EB-5 investors, and Extell Development’s Hard Rock Hotel project in Times Square.
Because the program’s main draw is a green card, these foreign investors are often willing to accept lower returns, making it a cheaper source of financing.
The surge in Vietnamese participation couldn’t come at a better time for U.S. developers, which have bemoaned the decline of cheap funding as Chinese investors pull back.
https://www.wsj.com/articles/real-estate-developers-look-to-vietnam-for-cheap-financing-11551794400
