American real estate company Tishman Speyer has formed a joint venture with China-based major global residential property developer China Vanke to develop a luxury residential complex in California, US.
The new premier residential condominium project will comprise two residential towers of 37 and 42 storeys connected to each other, which together will accomdate 655 residences in total.
Under the joint venture terms, Tishman Speyer will manage the project that will be developed at 201 Folsom Street, San Francisco, close to the company’s another twin-tower residential project The Infinity.
Tishman Speyer believes the new complex would expand its footprint in San Francisco and elevate its position as a developer and owner of sustainable properties in the region.
On signing the deal, Tishman Speyer president and Co-CEO Rob Speyer said, "We welcome the opportunity to create another iconic residential property in San Francisco, following the great success of The Infinity."
China Vanke believes the project marks a new beginning for its overseas activity and will ‘help leverage required synergy and benefits’ to explore similar projects outside China.
Commenting on the partnership, China Vanke chairman Shi Wang said the company is entering into the American market to better understand business models in a mature market and to gain management experience through project cooperation.
"We selected the San Francisco 201 Folsom Project as Tishman Speyer is a global industry leader and a business partner who inspires our full confidence," Wang added.
Although the financial details of the deal have not been disclosed, Tishman Speyer’s investment is believed to be the first North American investment in China Vanke.
Tishman Speyer raised several funds from Chinese investors, which currently represent about 20 million ft² at various stages in its development pipeline.