China’s Government Jumps into Global Real Estate Investment with Blackstone


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An eternal optimist, Liu-Yue built two social enterprises to help make the world a better place. Liu-Yue co-founded Oxstones Investment Club a searchable content platform and business tools for knowledge sharing and financial education. also provides investors with direct access to U.S. commercial real estate opportunities and other alternative investments. In addition, Liu-Yue also co-founded Cute Brands a cause-oriented character brand management and brand licensing company that creates social awareness on global issues and societal challenges through character creations. Prior to his entrepreneurial endeavors, Liu-Yue worked as an Executive Associate at M&T Bank in the Structured Real Estate Finance Group where he worked with senior management on multiple bank-wide risk management projects. He also had a dual role as a commercial banker advising UHNWIs and family offices on investments, credit, and banking needs while focused on residential CRE, infrastructure development, and affordable housing projects. Prior to M&T, he held a number of positions in Latin American equities and bonds investment groups at SBC Warburg Dillon Read (Swiss Bank), OFFITBANK (the wealth management division of Wachovia Bank), and in small cap equities at Steinberg Priest Capital Management (family office). Liu-Yue has an MBA specializing in investment management and strategy from Georgetown University and a Bachelor of Science in Finance and Marketing from Stern School of Business at NYU. He also completed graduate studies in international management at the University of Oxford, Trinity College.

By ,  from mingtiandi Real Estate,

According to reports in the Wall Street Journal and the official China Daily, China’s government has made an investment of more than US$500 million into Blackstone Real Estate Partners VII, a private equity fund active in in commercial real estate.

While there has been considerable press coverage of private Chinese companies and individuals purchasing real estate assets overseas, the government’s financial institutions had previously remained cautious about getting involved in real estate investments outside of China.

China invests in Blackstone Real Estate FundThe investment was reportedly made by the State Administration of Foreign Exchange (SAFE), which manages China’s more than US$3 trillion in foreign exchange reserves. However, there were no reports of official confirmation of the move by SAFE or Blackstone.

Blackstone’s private equity funds have been active in nearly every major sector of commercial real estate, owning offices, warehouse and distribution centers, shopping centers and hotels. In particular the firm has capitalised on limited supply and slowly increasing demand for commercial space in the United States and benefit from occupancy improvement and rent growth.

The Wall Street Journal report said SAFE will allocate about 5 percent of the $3.2 trillion foreign reserves it controls to asset classes such as private equity, as an alternative to its traditional investments in government bonds, cash and other liquid assets remains the main trend.

Commenting on the investment in the China Daily, Zhang Anyuan, a senior analyst at the economic research institute under the National Development and Reform Commission said, “The diversification of China’s foreign exchange portfolio is vital for the country to maintain the value of its assets.”

We can expect that with the central government getting involved in overseas real estate investments, and the local property market remaining tightly controlled, that there will likely be more moves by government companies to purchase overseas property assets, and further growth of sales of overseas homes to Chinese nationals.

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