The Wanxiang Group, which happens to be one of the largest manufacturers of auto parts in China has recently declared that it plans on investing heavily in the real estate sector of the U.S. the company has taken this step in the face of economic recovery and expects that it will generate favorable returns. Since 2010, this auto maker is known to have invested in close to 60 projects all over China.
In fact, the company still has plans of investing more in several areas. Student housing, medical buildings, office towers, homes, warehouses, and shopping centers are a few of the areas in which the Wanxiang Group has invested heavily. During a recently held conference, a senior official of this company stated over the past five years it hardly got a chance to invest in the automotives sector of the U.S.
Also, as per the past performance reports of the company, the return on investments in the real estate sector have been exceptionally high and this is a major motivating factor for the company to invest more in this sector. A key factor that is driving Chinese developers to increase investments in foreign soil is the slowing economy of China. Several Chinese companies in the recent past had invested almost US$6 billion in the commercial property segment of the U.S.
This investment was almost twice the amount that was invested in 2013. This made China the second largest investor after Canada in the real estate sectors of the U.S. As per Real Capital Analytics Inc., Wanxiang happens to be the second largest investor from China that holds the maximum property in the U.S. This company is situated in eastern part of Hangzhou, which is a popular city in China.