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Waldorf Astoria Sale Is a Watershed Moment

NEW YORK CITY—Monday's purchase at an historic price of the legendary property by Chinese investors sends up a signal that Asia remains extremely bullish on the city.

By Rayna Katz | Updated on October 06, 2014

NEW YORK CITY—The sale on Monday of the world famous Waldorf-Astoria New York—which became a launching pad for a global brand of hotel properties—to Chinese investors underscores the interest that Asia-based investors have in the US generally, and in New York in particular, according to several analysts.

“This transaction represents the highest price ever paid for a single hotel asset in the United States, and the most paid for a standing building by a Chinese investor,” Kevin Mallory, global head of CBRE Hotels, tells GlobeSt.com. “New regulations allow Chinese insurers to invest up to 15% of their assets in non-self-use real estate. With over $1.2 trillion in assets, the recent regulatory change allows for significant allocations of capital to the real estate sector. Most insurance funds allocate approximately 6% of their investment funds to real estate of which 20% could typically be invested off-shore. These rather significant allocations, combined with the opportunity to invest at better risk adjusted yields thank can be achieved domestically will result in an acceleration of off-shore investments like the Waldorf.”

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