Why Foreign Investment In LA Is Here To Stay

There is an incredible amount of foreign investment, particularly from China, in LA. But will foreign investors continue to be attracted to the city?

Urban Link CEO I-Fei Chang, former president and CEO of Greenland USA, said she thinks foreign investment is “far from done” in LA. 

LT Global Investment VP Wei Huang agreed, saying, "we just started and have a long way to go."

While LA is known for its beaches and Hollywood, foreign investors need to know more about what the city has to offer, said the panelists, who included World Trade Center - LA president Stephen Cheung and Polsinelli Law principal Mahsa Aliaskari. 

The story of why foreign investors flock to LA has not been told enough, Stephen said during the panel moderated by Gensler regional managing principal Robert Jernigan. More than 175 people attended this year's Foreign Investment Forum.

The panelists agreed foreign investors need to work with local partners and forge connections.

Mahsa said it can be more challenging when those investors don't understand developers and who's involved.

The emphasis should not just be on foreign investors putting money in LA, but also putting down roots here, according to I-Fei.

DTLA will continue to evolve and be successful, but "we also need to focus more on what is still missing," I-Fei said.

This is important because "we cannot continue to do the same product over and over" since this would simply flood the market, she said.

In addition to bringing more residential living to DTLA, I-Fei said there needs to be more affordable housing.

While Asia as a continent has the most foreign capital investment in the US, most people will be surprised to learn the nation with the most investment capital in the US is Canada, according to Eastdil Secured SVP Michael Kathrein (pictured far right).

The panel also included (from left) moderator Nixon Peabody partner Justin Thompson, Gaw Capital SVP Mike Hu, Ackman Ziff managing director Sandeep Pathak and OUE CEO of the Americas Lucy Rumantir. Panelists said foreign investors also are seeking gateway cities like LA and San Francisco because there is now a flight to stability.

Lucy spoke of how proud OUE is to be able to contribute to California—and especially LA and DTLA with its acquisition of the US Bank Tower and "the only skyslide in the world."

She said she doesn't know of any building in LA that has such an attraction on top of its building.

Instead of investing in equity deals, some Asian investors are now getting involved in debt deals, according to Mike (pictured left with Sandeep).

Investors are also keeping their eyes on the looming decision regarding EB-5, according to the panelists. EB-5 is scheduled to expire on Sept. 30.