the volatility of its non-property businesses (which include energy, finance and auto dealerships). Still, the company reported $44.4 billion in debt at the end of June 2017, a slight decrease from the $44.6 billion reported at the same time last year. And the company reported a 16.6 percent year-over-year growth in revenue in the first half of 2017.
“Greenland Holding s credit metrics mildly improved, but its debt leverage remains high for its rating,” Moody s Franco Leung said in the report.
Other Chinese investors and developers such as HNA Group, Anbang Insurance Group and Fosun International have gotten into hot water with regulators for taking on too much debt. Late last year, Xinyuan Real Estate, which developed the Oosten, lost most of the key team running its U.S. development arm, Xin Development, and brought in Kuafu Properties to help manage its active projects.
What these companies have in common is that they are not owned by the Chinese government. Meanwhile, SMI USA — the U.S. arm of Shanghai Municipal Investment — recently invested $73 million for a majority stake in Toll Brothers’ 351-355 Broadway and has a $300 million equity investment in Extell Development’s Central Park Tower.
Much about the company’s future at Pacific Park remains unclear. Greenland still must meet the state’s deadline to build 2,250 units of affordable housing by 2025, of which less than half is complete. The distribution of these homes in the 11 remaining buildings has yet to been announced.
During a Wednesday meeting of the Atlantic Yards Community Development Corporation — a subsidiary of the Empire State Development Corporation — board members repeatedly asked how Greenland would take on a bigger responsibility at Pacific Park. They wanted to know how a 25 percent increase in ownership would translate to on-the-ground work. Ashley Cotton, who is leaving Forest City for a new company started by MaryAnne Gilmartin and the principals of L L Development, noted that the core project team wouldn t change. The new firm, L L MAG, has a service agreement with Forest City to continue working on the development.
“The skills you need to do Pacific Park exists across the two companies,” Cotton said. “Your lives won t change.”
It’s unclear how Greenland is financing its latest purchase, and officials at the company and Forest City are keeping mum about the value of the deal. Jerome Sanzo, executive director of Industrial Commercial Bank of China, which has worked with Greenland, declined to comment beyond saying that the company has been “very successful in their development activities in the U.S.”
The Greenland Group was formed in 1992 and has a presence in nine countries. Its U.S. subsidiary has $8 billion in assets, according to its website, and 100 employees across its three offices. The Brooklyn office has roughly 30 people, and Solish noted that the company isn’t planning to go on a hiring spree anytime soon.
The increased stake in Pacific Park doesn’t necessarily mean that Greenland is looking to further expand in the U.S. market, according to one source familiar with the company’s thinking.
“I think that it means that they knew that Forest City was really no longer interested in development in Pacific Park, he said. “Greenland is a developer. They were interested in building there, and they felt that they were already very pregnant, and they had to do this.”
Tags: Chinese Developers, Development, Greenland Group, pacific park brooklyn, Real Estate Finance
We are having some technical difficulties. Try again later.