While investors are choosing traditional investment projects such as hotels, apartments and senior living facilities, some Chinese investors are quite comfortable with much smaller projects such as brand name franchise restaurants and clinics. Projects with I-526 insurance coverage is finally gaining recognition. Investors' key concerns are the refund of their investment capital (exit strategies) and how their EB-5 capital to be re-deployed prior to the return of investors fund.
There are possibly a hundred EB-5 projects shopping investors in the Chinese market, many projects have experienced up-hill battles due to the competitive market. We have heard that some of projects have been in the market for two years, and still have difficult time to raise capital. It is very likely such projects would give up EB-5 financing.
To learn more about the legislative and market conditions, join us at Chinese Real Estate PE and EB-5 Forum on Oct. 26, 2016.