December 15, 2011
EB-5 News Blog: continued uneasiness in China about marketing of EB-5 projects to immigrant investors
Atlantic Yards Report
Apparently there's continued uneasiness in China about marketing of immigrant investor projects, as detailed in the EB-5 News Blog, compiled by Brian Su, head of the EB-5 China Market Council and an EB-5 consultant in Illinois.
On 1/9/11, I pointed to five reports in Su's blog about Chinese officials cracking down on abuses or expressing concern. More recently, Su's EB-5 News blog reported 12/12/11, Report from China: Beijing Exit & Entry Service Association Issues Warning on EB-5 Program:
Beijing Exit & Entry Service Association recently issued a risk warning notice to local Chinese emigration agents and potential investors on EB-5 regional center program. The year of 2011 has been a very busy one for many Chinese emigration brokers that promote EB-5 projects to Chinese investors; various EB-5 projects have been marketed to Chinese investors, and the EB-5 regional center activities in China have been alarming to Chinese emigration trade associations around the country.
A 4/5/10 report by the Portland (OR) Development Corporation on the possibility of setting up a regional center to market EB-5 investments contains some interesting insights, based on calls to current regional center providers.
The report notes that marketing overseas is crucial, which means local government is rarely the applicant, because it lacks such marketing resources. A minimum of $600,000 is needed to set up, apply, and administer a regional center.
However, endorsement (or the appearance thereof) by local government is critical (as suggested in my coverage of the Atlantic Yards EB-5 venture in China) because it indicates political support, provides the appearance of financial stability, and plays well with investors from China, the largest source of EB-5 funds.
Posted by eric at December 15, 2011 11:51 AM