Qualifying investments: How to assuage would-be investors
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FEBRUARY 8, 2019 [FROM THE ARCHIVE]
Qualifying investments: How to assuage would-be investors
It is amazing how many potential investments assume that because the project is simply listed as "overseas" that is enough for a potential investor to peak his/her interest and hand over money.
Overseas projects should know full well going into China the market is hyper competitive, investors routinely look at multiple projects before moving forward with any decision, and rarely is the word "overseas" enough to secure a financial commitment from a would-be China investor.
"There are so many overseas projects that word is 'passé' at this point," says Bobby Afshar, partner at RMG Group. "If you want to secure investment, you’ve got to assuage their insecurities, and more often than not, that means giving a potential investor verifiable documents and regular updates on a project."
RMG Group looks at the three pre-qualifying checklist items projects need to do before putting offering documents in front an investor from Mainland China.
Embassy Commercial Services
For a few hundred dollars and a week’s worth time, the China Consulate-General, providing a certificate of authenticity stamped with the country’s official seal, can authenticate every document associated with an investment opportunity.
On average, Afshar says less than 10 percent of companies engage in this for a project, but having these materials on hand increases closing rates by 80 percent.
Project Photographs
Having renderings of the finished project is great for visualization purposes, but having photographs of the current site and/or facilities, as well as regular updates of a project’s progress is key.
Afshar says most companies are too timid to show the current state of a project, particularly real estate, because the current state is usually a rundown facility or a hole in the ground.
But current site images, as well as regular image updates, regardless of how mundane or miniscule, are an excellent project qualifier.
Regular Company Statements
Along with regular photograph updates, regular statements from the company are a necessity.
An overseas investment opportunity can be in the marketplace for months at a time as potential investors circle. It is crucial for a company to issue weekly press releases on what they are doing.
According to Afshar, if you aren’t talking about your project, potential investors aren’t talking about your project either.
Middle East developer gives away Dubai apartment for CNY
If there was such a thing, the award for most unbelievable Chinese New Year gift to domestic investors would go to Dubai-based property developer Emaar Group, which is giving one lucky follower from China the opportunity to win an apartment located right next to the Burj Khalifa tower.
According to the contest rules, between Feb. 1 – 11, registered users of Emaar Group’s domestic web portal that upload a video on to Chinese social media and e-commerce platform RED, and then forward to Emaar, are entered for a chance to win a new apartment in downtown Dubai. One winner will receive an apartment valued at nearly $600,000 USD.
Second place winners will receive two round-trip tickets to Dubai, a three-night stay at a five-star Dubai hotel, or one of 100 tickets to the Burj Khalifa’s At the Top observation deck.
To read more about the Chinese New Year contest, click here (link in Mandarin).
Shanghainese get Long Island condo opportunity
Condominium units in an as yet-to-be completed 25-story luxury development located in Long Island City, New York, are now being pre-sold to would-be Shanghai investors, according to the latest property listings report from Shanghai-based immigration agency Welltrend. When completed, the Star Tower will contain 184 units, and feature modern amenities such as a health club, pool, roof deck, and parking and valet services. Star Tower is scheduled to open by Q2 2019. According to Welltrend, the starting price for one- and two-bedroom units is $800,000 USD.
North China investor scores Malta approval
An investor from China’s northern Liaoning province recently received immigration investment approval on his application to Malta, according to the latest investor report from Shenyang-based immigration agency Mei Xink Overseas. The agency said the investor now must complete the process by verifying his 250,000 Euro investment into the country. As part of Malta's immigration investment program, foreign nationals that purchase real estate or enter into a property lease in Malta are eligible for citizenship.
Bangkok neighborhood skyline addition
Condominium units in an as yet-to-be completed 31-story housing development located in Sukhumvit, an up-scale district of Bangkok, are now being pre-sold in southern China, according to the latest property listings report from Shenzhen-based immigration agency Glory Investment. When completed, the Noble BE33 development will include 282 one-, two- and three-bedroom condominium units ranging from 34 - 140 sq/m in size. Currently, the main contractor has completed the structural work to the 17th floor, with the full project to be completed by Q4 2019.
Melbourne tower gets leg up from China
Apartment units in an as yet-to-be completed mega development located Melbourne are now available to investors in northern China, according to the latest property listings report from Beijing-based immigration agency CIIC. With construction on schedule to be completed by Q4 2020, Melbourne Square will feature 1,054 apartments across two towers. In addition to apartment units, Melbourne Square will include a wide range of retail and dining options, as well as a 600-room Hilton Hotel, scheduled to open by 2022.